WRAPUP 2-China inflation near 12-year high, c.bank acts

* Consumer inflation holds close to 12-year high

* PBOC raises bank reserve requirements 4th time this year

* April trade surplus slightly smaller than year earlier (Adds reserve requirement increase, earthquake)

By Eadie Chen and Langi Chiang

BEIJING, May 12 (Reuters) - China's consumer price inflation clung near a 12-year high in April, and authorities quickly reacted by raising the amount of money banks must keep in reserve, sticking to a tight policy despite weakening global growth.

For authorities who have insisted their priority is to tackle price rises, the quickening of annual inflation to 8.5 percent from 8.3 percent in March will be frustrating, while there is also a glimmer of optimism.

"This isn't something the government will necessarily panic about, particularly as food prices are now beginning to fall," said Paul Cavey, economist at Macquarie Securities in Hong Kong.

Apart from February's reading of 8.7 percent, inflation was last higher in May 1996.

"Greater prominence needs to be given to curbing inflation and controlling price rises," the National Bureau of Statistics said in a statement accompanying the inflation data.