SAO PAULO, Oct 9 (Reuters) -

Consumer prices in Brazil rose slightly less than expected

in September but accelerated from the previous month due to

higher electricity costs, government statistics agency IBGE said

on Wednesday.

Prices as measured by benchmark inflation index IPCA

rose 0.44% in September, nearly in line with the 0.46% increase

expected by markets but well above the 0.02% fall seen in

August.

In the 12 months through September, consumer prices in

Latin America's largest economy were up 4.42%. Economists polled

by Reuters were expecting an increase of 4.43%.

According to IBGE, the inflation figures were boosted by a

5.36% jump in residential electricity prices as Brazil faces a

major drought, impacting power costs since more than half of

country's supply comes from hydroelectric plants.

Finance Minister Fernando Haddad told reporters that the

fresh IPCA data clearly showed that the drought is affecting

energy and food prices, but added that core inflation was "under

control."