The spurt in vegetable and cereal prices pushed retail inflation to 10.91 per cent in February, raising doubts over whether the Reserve Bank of India would reduce policy rates on March 19.
This is higher than the annual consumer price index (CPI) inflation of 10.79 per cent recorded in January.
While vegetable prices jumped 21.29 per cent in February on a year-on-year basis, cereals and products prices were up 17.04 per cent.
The corresponding retail inflation rates for rural and urban areas stood at 11.01 per cent (10.79 per cent) and 10.84 per cent (10.73 per cent), respectively.
Egg, meat and fish, too, turned costlier by 15.72 per cent. Oils and fats were dearer by 14.56 per cent, official data released on Tuesday showed.
Pulses were costlier by 12.39 per cent and sugar by 12.10 per cent on an annual basis. Clothing and footwear recorded a 10.87 per cent increase in prices.
All eyes are now on the wholesale price index (WPI)-based inflation for February, which is due to be released on Thursday. WPI is the main gauge of inflation in India.
The WPI-based inflation for January stood at 6.62 per cent, higher than the RBI’s comfort level of 5-6 per cent.
It is widely expected that RBI will further ease policy rates to boost economic growth, which is likely to touch a decadal-low of about five per cent in 2012-13.