UPDATE 1-Iran inflation tops 26 pct yr/yr in June -report

(Adds economist comment, background)

TEHRAN, July 3 (Reuters) - Iran's annual inflation rose to 26.4 percent in June, an Iranian news agency cited central bank figures as showing on Thursday, as consumer prices continued to climb steadily in the world's fourth-largest oil exporter.

Rising inflation is expected to be a key issue for voters in next year's presidential election, with President Mahmoud Ahmadinejad facing growing criticism from MPs, the public and the media over his government's failure to rein in price hikes.

The Mehr News Agency quoted the central bank as saying consumer prices rose by 2.2 percent in the Iranian month that ended on June 20 compared with the previous month, when the year-on-year rate reached 25.3 percent.

Compared with the same month in 2007, prices rose 26.4 percent in June, it said.

Central bank officials were not immediately available for comment on the Mehr report and the bank's website (www.cbi.ir) did not carry the inflation data.

Ahmadinejad came to power in 2005 on a pledge to share out Iran's oil wealth more fairly but the conservative president has come under fire over his economic policies.

Analysts say the profligate spending of an influx of petrodollars combined with interest rates well below inflation are factors fuelling inflation.

A London-based economist said the latest inflation figure was no surprise. He blamed loose fiscal and monetary polices while saying rising global food and other prices added to the problem.