Rising for the third straight month, consumer price inflation edged up to 5.37 per cent in February against 5.11 per cent in January. The pace, however, remains slower than the rate a year ago–of 7.7 per cent.
Food inflation rose 6.8 per cent during February with relatively higher rates of rise in prices of fruits, vegetables, spices, pulses, meat and fish and pre-packed food products. The rate of price rise in pulses was 10.6 per cent. Inflation in prices of vegetables was high at 13 per cent as it was for milk and milk products at 9.2 per cent. Prices of fruits also grew fast at 8.9 per cent.
In a recent agreement, the Centre and the Reserve Bank agreed to a 6-per cent level target for January 2016.
While a higher number was expected especially on the food side, the unseasonal rains in February - March need to be evaluated in terms of impact on prices in the coming months, said Care Ratings Chief Economist Madan Sabnavis in a report on the inflation data.
