China's Zhou acts as inflation hits 11-year high

Zhou Xiaochuan, the governor of the People's Bank of China, has responded to a surge in inflation by pledging to curb price rises and excess liquidity.

The October CPI, published on Tuesday, showed inflation had risen back to its August high of 6.5%, an 11-year peak, after falling slightly, to 6.2%, in September. Data published earlier this week also revealed the trade surplus hit a record high of $27 bn last month.

Zhou said on Wednesday: "We must make full use of price tools and stabilise i