May 13 (Reuters) - Copper advanced to a three-month high

on Wednesday as investors continued to buy in supply concerns,

though uncertainties in the Middle East keep oil prices high,

and higher-than-expected U.S. inflation dimmed hopes for any

near-term easing in interest rates.

The benchmark three-month copper on the London Metal

Exchange rose 0.78% to $14,130.50 a metric ton as of 0250 GMT

after reaching $14,196.50, a more than three-month high.

And the most-active copper contract on the Shanghai

Futures Exchange jumped 1.65% to 108,490 yuan ($15,974.38) a

ton, after also reaching an over three-month high of 108,900

yuan.

Investors continued to buy despite supply concerns.

Freeport-McMoRan maintained its end-2027 timeline for a full

recovery at Indonesia's Grasberg mine, while traders monitored

risks to the mining industry in Peru over fuel after state-run

Petroperu sought $2 billion in state-backed loans.

After copper broke out of a prolonged trading range and

climbed above $13,500 a ton, with little resistance on the

upside, analysts at Chinese broker Galaxy Futures said, adding

that momentum buying and stronger sentiment quickly pushed

prices higher.

The red metal, often dubbed "Dr. Copper" for its role as a

bellwether of the macroeconomy, is heading into its eighth

consecutive day of gains despite unfavourable macro factors.

Oil prices slipped on Wednesday but remained elevated, with

Brent above $107 a barrel, as investors watched a

fragile ceasefire in the Iran war and awaited U.S. President

Donald Trump's meeting with Chinese President Xi Jinping.

Higher energy prices are feeding through into inflation.

U.S. consumer prices rose 3.8% in the 12 months through April,

the biggest increase since May 2023, while markets have largely

priced out any chance of a Federal Reserve rate cut this year.

A stronger-for-longer rates outlook typically weighs on

dollar-priced metals by lifting the U.S. currency and

raising financing costs.

Among other metals on the LME, aluminium gained

0.63%, zinc added 0.25%, lead rose 0.28%, nickel

increased 0.44% and tin advanced 1.02%.

Elsewhere on SHFE, aluminium ticked 0.22% higher,

zinc climbed 1.41%, lead dipped 0.24%, nickel

dropped 0.36%, tin was little changed, down

only 0.04%.

Wednesday, May 13

DATA/EVENTS (GMT)

0645 France CPI (EU Norm) Final MM, YY Apr

0645 France CPI MM, YY NSA Apr

0900 EU GDP Flash Estimate QQ,,YY Q1

1230 US PPI Machine Manufacturing Apr

($1 = 6.7915 Chinese yuan renminbi)