UPDATE 5-Mexico inflation hits 3-year high in early May

(Recasts throughout; adds GDP data, closing market levels)

* Inflation jumps to highest level since December 2004

* Rising prices pressure central bank, hit bonds

* Early-May consumer prices fall on electricity subsidy

By Noel Randewich and Jason Lange

MEXICO CITY, May 22 (Reuters) - Mexico's annual inflation accelerated in early May to its fastest clip in more than three years as a world food crisis pushed up costs for staples like rice and chicken.

Central bank data on Thursday showed consumer prices rose 4.83 percent in the 12 months through mid-May, putting pressure on policy makers to raise interest rates despite a looming economic slowdown. The inflation rate was 4.55 percent in April.

Consumer prices have jumped across Latin America in recent months as rapidly developing economies like India and China boost demand for food commodities and as grains are diverted to make biofuels.

"The bad news is that it is not over," ING economist Salvador Moreno said in a report. "The assumption of having stable or declining agricultural prices for an extended period is wishful thinking."