UPDATE 1-Kazakhstan Sept inflation inches up to 5.0 pct

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ALMATY, Oct 1 (Reuters) - Annual inflation in Kazakhstan inched up to 5.0 percent in September as food prices rose at a faster pace, leaving it on track to hit the government's full-year target.

The central bank has cut its key refinancing rate four times since February to shore up central Asia's largest economy, reducing it to an all-time low of 5.5 percent in August.

The government's inflation target for the full year is between 6 percent and 8 percent, a range it should hit if food price rises in the oil-fuelled economy continue to accelerate as expected following a modest grain harvest.

The bank said last month it planned to hold interest rates steady at least until the fourth quarter, before assessing the effect of higher grain prices on inflation.

Month on month, prices rose 0.6 percent in September compared with 0.3 percent in August, Monday's data from the State Statistics Agency showed.

The inflation rate in 2011 was 7.4 percent, down from 7.8 percent the previous year.

(Writing by Dmitry Solovyov; Editing by John Stonestreet)