India's retail inflation soars to 15-month high of 7.44%

India's retail inflation surged to a 15-month high in July,on account of high prices of vegetables and other food items, official data showed on Monday. According to the data released by the National Statistical Office (NSO), retail inflation, as measured by the consumer price index, was 7.44 per cent in July this year. In the previous month, it was 4.87 per cent, and 6.71 per cent in July last year.Inflation in the consumer food price index rose to 11.51 per cent in July while inflation in the food and beverages basket jumped to 10.57 per cent.

Retail inflation in vegetables surged to 37.34 per cent last month from a deflation of -0.93 per cent in June. Inflation was also witnessed in different components of the food basket.The surge is said to be due to a steep rise in the prices of vegetables, particularly tomatoes, over the past month, amid an unpredictable monsoon. RBI Governor Shaktikanta Das said that policymakers will have to stand ready to go beyond keeping a watchful eye and deploy policy instruments if necessary during the August MPC meeting.