Retail inflation rose to 5.03 per cent in February mainly on account of higher food prices, government data showed on Friday. The consumer price index (CPI) based retail inflation was at 4.06 per cent in January.
The rate of price rise in the food basket accelerated to 3.87 per cent in February, as against 1.89 per cent in the preceding month, as per data released by the National Statistical Office (NSO).
Inflation in ‘fuel and light’ category remained elevated at 3.53 per cent during the month vis-a-vis 3.87 per cent in January.
The Reserve Bank, which mainly factors in the retail inflation while arriving at its monetary policy, has been asked to keep CPI inflation at 4 per cent with a margin of 2 per cent on either side.