FOREX-Yen falls broadly as US CPI data lifts risk demand

(Recasts, updates prices)

* Yen falls broadly as U.S. CPI data boost risk demand

* CPI rises at an unexpectedly slower pace in April

* CPI does not change views Fed on pause

By Lucia Mutikani

NEW YORK, May 14 (Reuters) - The yen fell broadly on Wednesday as a benign U.S. consumer inflation report for April raised investors' appetite for risk and was seen giving the Federal Reserve flexibility to deal with an economic downturn.

The unexpectedly slower increase in the consumer price index (CPI) briefly caused traders to sell the dollar, but analysts said it did not alter market views the Fed's interest-rate-cutting campaign was almost over.

"The market looked at it as a positive for risky assets, namely that it takes a little bit of stress off the inflation outlook and gives the Federal Reserve more flexibility in terms of the economic outlook," said Brian Dolan, chief currency strategist at Forex.com in Bedminster, New Jersey.

The dollar jumped to a session high of 105.44 yen <JPY=>, with U.S. stocks surging as worries eased about inflation. It was last trading at 105.22 yen, up 0.4 percent on the day.