* FTSE up 0.5 percent
* Miners lifted by strong China output, inflation
* Petrofac gains on Wellstream, GE read across
By David Brett
LONDON, Dec 13 (Reuters) - Miners led Britain's top shares higher on Monday, as Chinese industrial output numbers topped forecasts and sent copper in London to a record high.
Investors also cheered China's move to raise reserve requirements for its banks, rather than hike interest rates, to control its overheating economy, as inflation in the world's fastest-growing major economy sped to a 28-month high.
By 0851 GMT, the FTSE 100 was up 29.98 points, or 0.5 percent at 5,842.93, having notched up a 1.2 percent rise over the course of the previous week.
"There's something of a short-term relief that China decided not to raise interest rates this time round," said Richard Hunter, head of equities at Hargreaves Lansdown.
"There are still thoughts that if inflation continues to rise at its current rate then further rate hikes are inevitable."
Chinese inflation showed signs of spreading beyond food prices, putting pressure on the government to ratchet up its monetary tightening policy.
Miners were the standout performers among London's blue chip stocks as traders toasted the continued demand from China. Kazakh mining group Kazakhmys was the top gainer up 2.3 percent.
Meanwhile, oil services firm Petrofac added 2.8 percent with traders citing a read across from mid cap peer Wellstream, which is the subject of an 800 million pounds ($1.3 billion) bid from U.S. firm General Electric Co.
Banks, which have struggled against the backdrop of worries over sovereign debt problems in the euro zone, were back on the front foot as risk appetite among investors improved. Barclays rose 0.9 percent.
The FTSE 100 echoed gains on Wall Street on Friday, which was boosted by consumer confidence figures, and overnight in Asia where traders set aside the risk of Beijing tightening monetary policy.
RETAILERS DELIGHT
Weekly sales figures from UK retailing bellwether John Lewis provided a welcome uplift for Britain's retailers.
Consumers shrugged off the recent cold snap and impending UK governments austerity measures, as John Lewis department store sales rose 10 percent year-on-year in the week to Dec. 11.
"There is also the potential for bringing future sales forward ahead of the VAT rise in January, certainly for the bigger ticket items there could be an element of 'borrowing from tomorrow's sales, which will make it more difficult come the new year," Hargreaves Lansdown's Hunter.
Marks & Spencer rose 0.5 percent, Next climbed 0.5 percent, while Wm Morrison Supermarkets and Sainsbury added 0.7 and 1.4 percent, respectively.
A majority of British retailers believe Christmas will be no worse than last year, despite the financial pressures of the last 12 months and the recent snow, a survey said on Monday.
However, economic uncertainty hit asking prices for homes in England and Wales, which have fallen 3.0 percent over the past month to stand just 0.4 percent higher than a year ago, property website Rightmove said on Monday.
Elsewhere, British Airways climbed 1.7 percent after the Financial Times reported the airline is discussing changes to its pension scheme rules that would enable it to slash its pension shortfall almost in half. (Editing by Hans Peters)