India's food-price inflation and growth face risks due to weather conditions, Shilan Shah of Capital Economics writes in a note. India recorded its driest June in over a decade, and the Indian Meteorological Department is forecasting weaker-than-normal rainfall for the rest of the season due to El Nino weather conditions, the economist says. Sowing conditions have deteriorated, weighing on the agriculture sector and lowering the crop yield, which adds upside risks to food inflation, Shah says. Water levels in Indian reservoirs will also be affected by low rainfall, which are used to generate hydroelectricity. "Periodic shortages of energy or blackouts could weigh on industrial activity" and affect growth, he adds. CE retains the view that the central bank will hike rates over the coming months. (kimberley.kao@wsj.com)