BENGALURU, Sept 8 Reuters Inflation in India was likely to have eased in August from a 15month high in July, led by cooling vegetable prices, but held above the upper end of the Reserve Bank of India39;s 26 target for a second month, a Reuters poll found.

Erratic monsoon rains have ruined some crops of staple food items, prompting the government to subsidise vegetable prices and ban exports of some cereals, providing temporary relief to households.

That was sufficient to bring down headline inflation as food prices account for nearly half of the overall inflation basket. However, rising energy prices are likely to limit the decline.

The Sept. 47 Reuters poll of 45 economists predicted the consumer price index rose 7.00 in August compared to a year ago, a dip from 7.44 in July. The data will be released on Tuesday.

Forecasts ranged between 6.50 and 7.65, with almost twothirds of respondents expecting inflation to be 7.00 or higher.

The worst is over in terms of the recent spike in vegetables, mainly tomato prices, and much of the headline deceleration we expect to see in the upcoming CPI report should stem from a sharp turnaround in food inflation back down to the singledigit territory, said Miguel Chanco, chief emerging Asia economist at Pantheon Macroeconomics.

Chanco added the erratic monsoon season means the risks to inflation will remain skewed to the upside over the next few months.

While inflation in Asia39;s thirdlargest economy was expected to remain…