* Fed policy meeting on Wednesday in focus
* Fed to buy $0.85 bln - $1.10 bln bonds due 2036-2044
NEW YORK, June 17 (Reuters) - U.S. Treasuries prices fell on Tuesday after consumer prices recorded their largest increase in more than a year, which may give the Federal Reserve more confidence in adopting a hawkish tone when it meets this week. The Labor Department said on Tuesday its consumer price index increased 0.4 percent last month, with food prices posting their biggest rise since August 2011. "It was less benign than expected," said Sean Murphy, a Treasuries trader at Societe Generale in New York. Investors are next focused on the Federal Reserve's monetary policy statement on Wednesday, when the U.S. central bank is expected to announce it will continue paring its bond purchase program and cut its growth projections. The timetable for when each interest member of the Federal Open Market Committee expects policy to begin tightening, and how quickly, will be keenly scrutinized, as will any comments about interest rate hikes or slack in the economy from Fed Chair Janet Yellen, who is due to speaks after the results of the meeting are released. Investors have been more wary of central banks becoming more hawkish, since Bank of England Governor Mark Carney surprised markets last Thursday by saying that Britain could become the first major economy to tighten monetary policy since the 2008 financial crisis. Benchmark 10-year notes fell 8/32 in price to yield 2.63 percent, up from 2.60 percent late on Monday. Thirty-year bonds dropped 11/32 in price to yield 3.42 percent, up from 3.40 percent. The yield spread between five-year notes and 30-year bonds also flattened to 168 basis points, just above a new five-year low of 165 basis points reached on Monday. The Fed will buy between $0.85 billion and $1.10 billion in bonds due from 2036 to 2044 on Tuesday as part of its ongoing purchases.
(Editing by Clive McKeef)