Inflationary pressure continues to build with the consumer price index - a key gauge of inflation - surging 6.5 percent in August, the highest since December 1996.

The upward spiral, driven mostly by an 18.2 percent surge in food prices, followed the indicator's rise to a 10-year high of 5.6 percent in July, from 2.2 percent in January.

The stock market tumbled 4.5 percent yesterday as investors panicked at the news, fearing more tightening measures.