Nigeria's inflation hits 13.22%, posts highest monthly increase

The consumer price index which measures inflation rose by 0.40 percentage points between July and August 2020 on a year-on-year basis, the highest increase recorded since October 2016.

The Reserve Bank of India intends to keep inflation around 4%, a rate that was breached in December when it accelerated to 7.35%. This hardening of consumer inflation above 6 per cent makes a further rate cut hard in RBI's monetary policy committee meeting in the first week of October, suggesting that the rate-cut cycle to propel growth may be paused.

The RBI's Monetary Policy Committee, headed by Governor Shaktikanta Das, adjusts key rates based on changes in inflation trends.

Data separately released by the industry department earlier in the day showed India's wholesale price inflation turned positive in August after a gap of four months when it remained in deflationary territory, signalling producers are slowly regaining their pricing power after the supply and demand shock triggered by the coronavirus pandemic. The retail inflation has been remaining above 6 percent, the upper band set by the RBI, for nine consecutive months.

The RBI Governor has warned that consumer inflation is expected to remain elevated in the country during the July-September period, and may subside going forward. Last month too, the government had revised the CPI data for June to 6.23 per cent from 6.09 per cent.

"This rise in the food index was caused by increases in prices of bread and cereals, potatoes, yam and other tubers, meat, fish, fruits, oils and fats and vegetables", it added. However, seven of the 14 components within the manufactured products segment have recorded a contraction in the latest month.

"The composite food index rose by 16.00 percent in August 2020 compared to 15.48 percent in July 2020".