Rising food prices take rate cuts off table for emerging economies

Pandemic induces inflation even as India, Turkey and Brazil battle downturn

20201004N india market (REUTERS)

Shoppers at an outdoor vegetable and fruit market in Ahmedabad on Sept. 7: India's consumer price index for vegetables jumped 11% in August.  © Reuters

MOYURU BABA, NAOYUKI TOYAMA and MOMOKO KIDERA, Nikkei staff writers

NEW DELHI/SAO PAULO/ISTANBUL -- Consumer prices have spiked in many emerging countries due to the coronavirus pandemic, tying the hands of central bankers that wished to use looser monetary policy to shore up disrupted economies.

The global downturn has taken a toll on emerging-market currencies as investors shun economies seen as fragile. This toll has raised the cost of imported products and pushed domestic prices upward.

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