China Battles Inflation

HONG KONG - While investors around the world are looking for a reduction in America's key interest rate next week, inflation-wracked China went the other way on Friday. For the fifth time this year, the central bank said it would raise its benchmark rate, in this case following a report of price increases at an 11-year high rate. With its currency kept artificially low, however, China seems destined to suffer continued inflation as money pours into the country as a result of its growing economy and trade surplus.