METALS-Most metals rise as dollar slips on soft US inflation data

SHANGHAI, Jan 16 (Reuters) - Prices of most base metals rose on Thursday, helped by a weaker dollar as soft U.S. core inflation data raised hopes that the Federal Reserve could cut interest rates further.

The dollar index paused its rally following the release of core consumer price index data. It was last at 108.98 - a 1.08% retreat from the 26-month high of 110.17 touched on Monday.

A weaker dollar makes greenback-priced commodities cheaper for holders of other currencies.

Excluding volatile food and energy components, core CPI increased 3.2% on an annual basis, compared with an expected 3.3% rise.

Traders of interest-rate futures now expect the Fed to cut rates twice by the end of this year, with the first reduction to come in June.

Three-month aluminium on the London Metal Exchange (LME) rose 0.6% to $2,618 a metric ton by 0144 GMT, bolstered by the European Commission's plan to ban Russian aluminium.

The European Commission intends to propose a ban on imports of Russian primary aluminium in its 16th package of sanctions against Russia over its invasion of Ukraine, European Union diplomats said on Tuesday.

"Russian shipments of the metal to Europe have already fallen due to widespread self-sanctioning by manufacturers. Any further restrictions would likely see only a limited impact on the market," ANZ Research said in a note.

LME copper rose 0.5% to $9,214, tin remained flat at $29,590, nickel was unchanged at $15,855, lead added 0.4% to $1,943.5 and zinc gained 0.2% to $2,868.

The most-active copper contract on the SHFE was up 1.0% at 76,000 yuan ($10,366.79) a ton.

SHFE aluminium added 1.3% to 20,420 yuan a ton, nickel was up 0.1% to 127,620 yuan, zinc fell 0.1% to 23,860 yuan, lead lost 0.1% to 16,575 yuan and tin added 0.7% to 247,450 yuan.

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