Colombia says July inflation speeds up to 0.48 pct

BOGOTA, Aug 1 (Reuters) - Colombian inflation increased to 0.48 percent in July from 0.17 percent in the same month last year, the government said on Friday.

A statement from the government's statistic department said consumer prices rose 6.53 percent in the first seven months of 2008, already way over the central bank's 4.5 percent target ceiling for the year.

The bank increased its key interest rate a quarter percentage point last month to 10 percent in a bid to control inflation expectations.

The central bank also cut its 2008 gross domestic product forecast to between 3.3 percent and 5.3 percent from its previous prediction of 4 to 6 percent. The economy grew 7.5 percent last year. (Reporting by Nelson Bocanegra)