CPI Inflation For Feb Rises To 5.37%; RBI May Now Hold Rates Steady

CPI inflation for the month of Feb rose to 5.37% for the month of Feb as against 5.19% in the previous month. CPI rural inflation was placed at 6.35%, while urban inflation was placed at 4.95%.

The Feb Fuel & Lighting inflation was placed at 4.72% vs 3.74% in January. Food inflation rose 6.79% thanks to milk and milk products which rose.

Today's reading of higher then expected inflation, will put pressure on the Reserve Bank of India to hold interest rates steady, instead of cutting rates further.

the RBI has already cut interest rates twice this year.

Meanwhile, the index for industrial production came in at 2.6 per cent as compared to the level in the month of January 2014. The cumulative growth for the period April-January 2014-15 over the corresponding period of the previous year stands at 2.5 at per cent.

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