China inflation up on food costs

Pork prices rose nearly 55% in October

China's inflation increased in October after shortages pushed food costs higher, according to the National Bureau of Statistics.

Annual inflation reached 6.5% in October, up from 6.2% in the previous month. Food prices increased by 17.6% in October.

Despite efforts to stem price rises, October's total inflation matches that in August, the highest in 11 years.

Analysts say the figures will raise pressure to higher interest rates.

The Chinese government said the latest inflation figures were largely explained by higher food prices - particularly for pork, a key Chinese ingredient, which climbed by nearly 55%.

"We believe the central bank will likely respond with tightening measures including strict controls on bank lending two more rate hikes before the end of the year" said Yu Song, an economist at Goldman Sachs.

Earlier this month China's central bank told banks to keep more money in reserves, rather than make it available for lending, in a bid to quell inflation.