WRAPUP 1-China's consumer inflation stays near 12-year high

By Eadie Chen and Langi Chiang

BEIJING, May 12 (Reuters) - China's consumer price inflation clung near a 12-year high in April, maintaining pressure on the government to stick to its tight policy stance despite softening 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, when the rate was 8.9 percent.

Food prices, which make up a third of the consumer basket, have been the overwhelming driver of inflation.

They rose 22.1 percent in April from a year earlier, though weekly government reports on fresh food prices have showed a slight dip in May.

Non-food prices rose 1.8 percent in April from a year earlier, the same as in March.

"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.