90 seconds at 9 am: China pays more for food, uses more electricity, sees rise in reserves; India also faces higher food costs; no US debt-limit deal; NZ$1 = US$0.836 TWI = 77.6

Here's my summary of the key overnight news in 90 seconds at 9 am, including news food prices may be stable here but that's not the case in the rest of the world

China’s inflation rate picked up to 3.1% last month, which was slightly faster than expected and its highest level since February, pushed up by their food prices. At the same time, the closely watched measure of electricity consumption rose 10.4% from a year earlier and above the 2013 average of 7.2%.

Also, China’s foreign-exchange reserves rose last quarter by the most in more than two years, a sign the government’s efforts to protect growth attracted money even as developing nations from India to Indonesia saw capital exit.

Meanwhile, prices are rising in India too, also underpinned by rising food prices. Together, that's a third of the world's population facing higher food prices, a risky public policy problem.

It's a partial public holiday in the US - Columbus Day - but most markets are open. And negotiations over the debt limit are dragging on, although markets got a boost when the President said he thought progress was being made.

The Dow is up, gold and oil are hovering around their short-term lows, and US Treasury yields are unchanged on the day at 2.69%.

The NZ dollar starts today higher again at 83.6 USc, 88.2 AUc, and the TWI is at 77.6.

Check in later this morning as RBNZ official Grant Spencer is speaking on the housing market, followed by Minister Nick Smith who will be doing the same. Yesterday's REINZ data reinforced how distorted the Auckland market is and the hunt is on to find ways to deal with that.

The easiest place to stay up with today's event risk is by following our Economic Calendar here »