Money Matters - Simplified

core prices

Food prices in China up 11.7 percent

Beijing -- China said Saturday its consumer price index rose 5.1 percent on an annual basis in November with food prices climbing 11.7 percent.

Core prices, which exclude food, rose 1.9 percent from November to November, CNNMoney.com reported.

On Friday, the People's Bank of China raised its reserve requirement for banks 0.5 percent after customs officials said exports had increased 35 percent over the past 12 months and imports were up 38 percent.

Analysts expect the bank will take further steps to slow the economy and curb the inflationary trend. Last week, China said it would aim for a more "prudent" monetary policy next for 2011.

In contrast, the annual CPI is about 1.2 percent in the United States.

U.S. markets rise after sell-off




Wall Street investors are also reacting to Tuesday's sell-off. The Dow Jones industrial average lost 178.47 points, or 1.59 percent Tuesday.
The Standard & Poor's 500 lost 19.41 points, or 1.62 percent.

In midmorning trading Wednesday, the DJIA added 9.96 points, 0.09 percent, to 11,033.46. The S&P 500 gained 4.57 points, or 0.39 percent, to 1,182.91. The Nasdaq composite index tacked on 13.80 points, or 0.56 percent, to 2,483.64.
The benchmark 10-year Treasury note rose 7/32 to yield 2.816 percent.