SAO PAULO, July 10 (Reuters) - Consumer prices in Brazil

rose less than expected in June as food inflation slowed down,

data from statistics agency IBGE showed on Wednesday.

Prices as measured by benchmark inflation index IPCA

were up 0.21% in June, decelerating from a 0.46% increase in May

and below the 0.32% jump expected by economists polled by

Reuters.

Annual inflation in Latin America's largest economy hit

4.23% last month, IBGE said, up from 3.93% in May but also below

the 4.35% expected by economists.

Seven out of the nine sectors surveyed by IBGE had price

increases last month. The biggest impact came from food and

beverage costs, which rose 0.44%, although slowing down from the

0.62% increase reported in May.

The only two groups that showed disinflation last month

were transportation and communications, with prices down 0.19%

and 0.08% on a sequential basis, respectively.

The latest inflation reading comes as Brazil's central

bank last month

halted its interest rate-cutting cycle

in an unanimous decision, citing higher inflation

expectations, market reaction to fiscal struggles and more

distant U.S. rate cuts.