UPDATE 1-Colombia says June inflation 0.86 pct, up yr/yr

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BOGOTA, July 1 (Reuters) - Colombia's June inflation rate was 0.86 percent, higher than expectations and up from the 0.12 percent registered in the same month last year, the government's statistics department said on Tuesday.

Thirty analysts polled by Reuters last week predicted that consumer prices would rise 0.45 percent in June, according to the average prediction given in the survey.

The central bank's inflation target for full 2008 is 3.5 percent to 4.5 percent. But consumer prices rose more than 6 percent in the first half of the year alone.

"It has been a long time since anyone believed that 2008 inflation would come in within target. The June number is further confirmation that the target will not be hit," said Camilo Perez, chief economist at Banco de Bogota.

"There is a higher chance now that the central bank will raise its overnight interest rate at its next meeting on July 25," Perez said.

The bank's overnight rate stands at 9.75 percent. (Reporting by Nelson Bocanegra, writing by Hugh Bronstein; Editing by Carol Bishopric)