WRAPUP 2-Latam inflation accelerates, spelling rate hikes

*Latin American inflation accelerates in June

*Annual inflation reaches multiyear highs across region

*Chile, Peru raise interest rates to tame inflation

*Rate hikes seen following in Mexico, Brazil, Colombia (Updates with Chile, Peru central bank rate hikes)

By Walker Simon

NEW YORK, July 10 (Reuters) - Latin American inflation accelerated in June as higher food costs drove up prices, raising the curtain on likely interest rate hike scenarios in coming weeks.

After reporting the highest annual inflation since the 1990s, Chile and Peru raised their benchmark interest rates on Thursday. They kicked off what are expected to be a regional round of rate hikes aimed at taming price rises.

The central bank of Chile raised its target overnight lending rate by 50 basis points to 7.25 percent. Peru raised its benchmark rate to 6 percent from 5.75 percent previously.

Across the region, other countries are seen following suit after reporting annual inflation hitting multiyear highs.

Brazil said on Thursday its benchmark IPCA inflation rate rose 6.06 percent in the past 12 months, the highest since 2005.

Portraying the perception of a gathering menace, Barclays Capital termed the upswing in Brazilian prices as the country's "big bad inflation wolf."

"The inflation picture is far from offering comfort to a central bank," it wrote. "We forecast more negative surprises in short-run inflation will contaminate (annual) figures."

It sees a "high risk" the IPCA will shoot past 6.5 percent this year, the target ceiling set by the central bank. Brazil had 4.46 percent inflation last year and 3.14 percent in 2005.

The central bank has raised its benchmark Selic rate by a whole percentage point since April to 12.25 percent, one of the highest in the world after discounting for inflation.

Thursday's inflation data ratcheted up pressure on the Brazilian central bank to raise interest rates. The debate in the market is whether the bank will raise rates 50 basis points or 75 basis points at its next policy-making meeting on July 23.

Interest rate futures in Brazil see a Selic rate of 13.25 percent by the end-2008. A central bank poll of economists on Monday put the Selic at 14.25 percent by the year end.