UPDATE 1-Brazil consumer prices rise above expectations to 0.58% in mid-January

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BRASILIA, Jan 26 (Reuters) - Brazil's IPCA-15 consumer price index rose 0.58% in the month to mid-January, decelerating from previous figures but at a pace that still exceeded expectations, statistics agency IBGE said on Wednesday.

The monthly rise was higher than the 0.43% increase foreseen by economists in a Reuters poll but slowed from a 0.78% surge in December thanks to lower transportation prices.

According to IBGE, prices rose in the remaining eight of nine groups of goods and services covered. The most significant impact came from foods and drinks, with a monthly increase of 0.97%.

The annual rate of inflation in mid-January reached 10.2%, topping the median forecasts in the poll of 10.04% and far above the central bank's year-end target for consumer price inflation of 3.5%.

As inflation pressures proved to be persistent, the central bank more than quadrupled its benchmark interest rate to 9.25% from 2% in 2021 and has already signaled another 150 basis point hike in February.

Analysts say Brazil's aggressive monetary tightening will drag on economic growth through 2022, affecting consumption and investments. (Reporting by Marcela Ayres; Editing by Catherine Evans)