WRAPUP 3-Chile July industry resumes growth, copper tumbles

* Chile July industrial output up 3.0 pct vs year ago

* Chile July Copper output falls 5.5 pct vs year ago

* Chile May-July jobless rate 8.4 pct vs 7 pct a year ago (Updates with Finance Minister, economist comments)

By Antonio de la Jara

SANTIAGO, Aug 28 (Reuters) - Chile industrial output rose a lower-than-expected 3.0 percent in July compared with a year ago, while copper output tumbled and the country's three-month jobless rate climbed from a year ago, data showed on Thursday.

The rise in industrial output compared with an unexpected 0.9 percent fall in June and a surprise 2.4 percent contraction in May. Even so, July's manufacturing production was below the median forecast of 10 analysts and economists, who had expected a 4.1 percent rise.

"The industrial output result is due to a good performance in the food, drink and paper and paper product divisions," the National Statistics Institute (INE) said.

"They offset production of common metals and (performance) of the printing sector." It said an extra working day in July had helped.

Analysts said the July data would leave the central bank with room raise rates to fight the strongest inflation in 14 years. The bank's President Jose De Gregorio forecast on Wednesday the bank will need to keep raising rates, which are already at decade-highs, in the most likely scenario.

The July data follows a second quarter in which the economy had expanded a bigger-than-expected 4.3 percent, accelerating from the first quarter thanks to surging investment and domestic demand.

"The moderate real activity and employment figures released today should not distract or deter the central bank from continuing to push the policy rate higher in the months ahead given the unprecedented inflationary risks," Alberto Ramos, senior economist at Goldman Sachs in New York, said in a research note.

Copper output in the world's leading producer fell 5.5 percent in July from the same month a year ago to 430,361 tonnes, INE said, citing a fall in production at larger mines.

Copper output from January through July this year fell 2.3 percent compared with the same period last year to 3,128,299 million tonnes.

Production of molybdenum, a metal that often occurs together with copper and which is used to strengthen steel, fell 25.7 percent in July to 2,947 tonnes. For the year-to-July, molybdenum output was down 22.2 percent.

It was not immediately clear why copper output at larger mines fell so sharply.

"Mining output has had good months and bad, so I don't think we should read too much into this month, because sometimes there are production problems, sometimes accidents ... it is a variable which is historically more volatile than other sectors of output," Finance Minister Andres Velasco told reporters.

Electricity generation in July rose 2.4 percent from the same month last year, INE said, thanks to improved hydroelectric generation after rains replenished reservoirs following a drought.

Chile's jobless rate in the May-July period was 8.4 percent, unchanged from the April-June period reported last month. However it was sharply up from 7.0 percent during the May-July period in 2007.

The jobless rate for the May-July period was in line with the 8.4 percent median forecast of 10 analysts and economists polled by Reuters.

The government has lowered its forecast for economic growth this year to 4.2 percent from a previous estimate of 5.3 percent, amid higher inflation and lower output. (Writing by Simon Gardner; Editing by Tom Hals)