Wholesale inflation rises to 39-month high in February

Meanwhile, December WPI inflation has been revised to 3.68 percent from 3.39 percent earlier. The January WPI inflation stood at 5.25 per cent.

The wholesale price inflation (WPI) hit a 39-month high in February. The WPI inflation data came in at 6.55 percent against Reuters poll forecast of 5.90 percent.

Meanwhile, December WPI inflation has been revised to 3.68 percent from 3.39 percent earlier.

The January WPI inflation stood at 5.25 per cent.

Wholesale prices rose 5.25 percent year-on-year in January compared with a 1.07 percent fall a year ago. The data compared with a 3.89 percent annual rise forecast by economists in a Reuters poll. In December, prices rose a provisional 3.39 percent. Wholesale food prices fell 0.56 percent year-on-year, compared with a provisional 0.70 percent fall in December.

Consumer price inflation or retail inflation cooled to its lowest in at least five years in January as food prices fell following the government's cash clampdown, but emerging price pressures mean the Reserve Bank of India (RBI) will probably keep interest rates on hold.

Consumer prices rose by an annual 3.17 percent last month - their slowest pace since January 2012 when the government launched the current index series. Economists surveyed by Reuters had expected prices to rise by 3.22 percent from a year earlier, compared with December's 3.41 percent increase.