12 Dec 2010

Inflation rises in China

8:02 am on 12 December 2010

Annual inflation in China rose to 5.1% in November - its highest since June 2008.

The rate of 4.4% in October was also an increase.

The government's full-year target is 3%.

China also reported much stronger than expected export growth in November.

The BBC reports the government has taken a number of measures to try to tighten its monetary policy and boost the supply of key goods.

In October, the central bank announced the first interest rate rise in nearly three years.

China introduced a stimulus package worth $US586 billion two years ago which many analysts believe was the catalyst for the inflation rises.