(Update prices for Asian market close)

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

on Wednesday as investors continued to buy on future supply

concerns as uncertainties in the Middle East kept oil prices

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

any near-term rate easing.

The benchmark three-month copper on the London Metal

Exchange rose 0.83% to $14,137.50 a metric ton as of 0700 GMT

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

The most-active copper contract on the Shanghai

Futures Exchange closed daytime trading 1.67% higher at 108,510

yuan ($15,980.15) a ton, after also reaching an over three-month

high of 108,900 yuan.

Freeport-McMoRan ( FCX ) maintained its end-2027 timeline for a full

recovery at its Grasberg mine in Indonesia, while traders

monitored risks to the mining industry in Peru over fuel after

state-run Petroperu sought $2 billion in state-backed loans.

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 $106 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

1.07%, zinc added 0.45%, lead rose 0.55%, nickel

increased 1.04% and tin advanced 1.46%.

Elsewhere on SHFE, aluminium rose0.97%, zinc

climbed 1.78%, lead ticked 0.15% higher,

nickel was up 0.17%, and tin gained 0.99%.

($1 = 6.7903 Chinese yuan renminbi)