To taste the effects of inflation in India, visit a fast-food restaurant. Sandwiches at Subway no longer come with a free cheese slice. Burgers at McDonald’s and Burger King are tomato-free. Restaurants are scrimping because of soaring food costs. Local eateries are hiking up the prices of tomato-based dishes—a staple across the country. In July vegetable prices increased by 37% year on year; tomato prices at some wholesale markets have surged by 1,400% over the past three months. All told, the annual food inflation rate jumped to 11.5% in July, the highest in more than three years, pushing overall inflation to a 15-month high of 7.4% (see chart).
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