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Feb CPI rises to 5.37% on costly foods, Jan IIP at 2.6%

The February consumer price index (CPI) rose to 5.37 percent versus 5.11 percent in the previous month mainly due to a spike in food inflation (6.7 percent). However, the industry output data (IIP) for January came in at 2.6 percent, higher than the CNBC-TV18 poll estimates of 0.47 percent.

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The February consumer price index (CPI) rose to 5.37 percent versus 5.11 percent in the previous month mainly due to a spike in food inflation (6.7 percent) with vegetables registering the sharpest rise.

However, the industry output data (IIP) for January came in at 2.6 percent, higher than the CNBC-TV18 poll estimates of 0.47 percent although consumer goods and electricity continue to see contraction.

The CPI data for March is likely to increase further on the back of country-wide unseasonal rains that impacted Rabi crops.February also saw hike in petrol and diesel prices which is reflected in transport inflation.

Rural inflation too inched up month-on-month at 5.79 percent versus 5.34 percent.

Experts now say an April rate cut is most unlikely now and the earliest one can expect the RBI to slash rate can’t be before July.

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