India's retail inflation rises to a 15 month high on food prices

NEW DELHI, Aug 14 (Reuters) - Indias annual retail inflation in July rose to its highest in 15 months due to surging food and vegetable prices, government data showed on Monday.

Indias annual retail inflation (INCPIY=ECI) rose sharply to 7.44% in July from 4.87% the previous month. A Reuters poll of 53 economists had forecast a rate of 6.40%. The figure was the highest since April 2022, when the print was 7.79%.

Food inflation, which accounts for nearly half of the overall consumer price basket, rose at a staggering pace of 11.51% in June as compared with 4.49% in June.

Last week, the Reserve Bank of India (RBI) raised its inflation forecast for the current financial year to 5.4% from 5.1% earlier, citing pressures from food prices. In the July-September quarter, it now sees inflation at 6.2%, significantly higher than the 5.2% earlier forecast.

Cereal inflation in July rose at a faster pace of 13.04% from 12.7% in June. Last month, the Indian government banned export of non-basmati white rice last month, triggering fears of further inflation in global food markets.

Vegetable inflation rose by 37.34% after a fall of 1% in the previous month.