Consumer price index based inflation was recorded at 3.17 per cent in January.
Despite hike in food and fuel prices, the retail inflation saw a sharp decline of 3.65 per cent in February this year as compared to 5.26 per cent over the corresponding month last year.
Meanwhile, consumer food price inflation rose to 2.01 per cent, according to official data released today. It was 0.61 per cent in January 2016. Similarly, retail inflation in fuel and light shot up to 3.9 per cent in February this year.
Wholesale Price Inflation (WPI) numbers that were out earlier today also rose higher than estimates to 6.55 per cent. Prime Minister Narendra Modi’s ban on Rs 1,000 and Rs 500 notes in November hurt demand in the largely cash-driven economy and CPI was below the Reserve Bank of India’s 4.00 per cent target.