Consumer food prices rose 3.26 percent in February, compared with 4.70 percent in January, as prices of pulses fell more than 17 percent from a year earlier.
Meanwhile, Economic Affairs Secretary Subhash Chandra Garg opined that given the increase in IIP numbers, industrial growth would henceforth be 'strong and comprehensive now.' 'Consumer Price Index-based inflation moderates further in February.
The index for all items less food and energy increased 0.2 percent in February following a 0.3-percent increase in January.
"This easing appears to have come largely on the back of a slowdown in the food price inflation on account of one-off seasonal factors", Richa Gupta, senior economist and senior director, Deloitte India said.
Inflation in pulses and spices witnessed fall in price rise.
The S&P 500 and the Dow slipped on Monday as the USA tariffs signed into law last week weighed on industrials, while a rise in tech stocks boosted the Nasdaq to a new record high. While not the Federal Reserve's preferred inflation measure, the data shows that price pressures are slowly moving towards the central bank's 2% target.
Aided by lower rate of food and fuel inflation, retail inflation for February slipped to a four-month low of 4.44 per cent from 5.07 per cent a month ago.
Compared to the same month a year ago, consumer prices were up by 2.2% in February, reflecting a modest acceleration from the 2.1% increase in January. Food prices were unchanged, with the cost of food consumed at home dropping 0.2 percent.
Clothing prices rose sharply for the second straight month in February, and rents, auto insurance and airline fares also increased.
What matters here is that this more or less continues some of the more muted inflationary pressures that had been seen in hourly wages in February versus January, seen in last Friday's unemployment and payrolls report. The index for all items less food and energy rose 1.8 percent over the past year, while the energy index increased 7.7 percent and the food index advanced 1.4 percent. It is expected to show an increase of 0.2%, well below last month's 0.5% increase. Capital goods, which point to rising investment demand in the economy, recorded positive growth for the sixth straight month, growing at 14.6%, signalling a revival in private investment. The NFIB survey also showed almost a third of owners reported raising compensation to retain or attract workers last month, the largest share in more than 17 years.
It was 4.88 per cent in November a year ago.
Manufacturing sector grew by 8.7 per cent during January compared with 2.5 per cent previous year.
Terming it as a "challenging period" for the central rate setting panel, Japanese brokerage Nomura said the rising MSPs are a risk and once inflation starts rising from the second quarter, the apex bank would turn more hawkish. In all 16 out of 23 industry groups in the manufacturing sector showed growth in January. Kroger said on Thursday that it will use one-third of its tax cut to boost shareholder returns, but the other two-thirds will go to higher wages and lower prices.