The central bank raised its short-term lending rate by 25 basis points to 7.50 per cent on January 31, but left its borrowing rate unchanged. While analysts expect another rate rise at or before the next policy review on April 24, some felt the RBI would be in no rush to tighten policy just yet.

What is alarming for the government is that prices of food articles like vegetables have been on the rise. Greens have risen 0.7 per cent, eggs, meat and fish 1.4 per cent, milk 1.4 per cent, and fruit and oil seeds 1.7 per cent each. But in comparison, the latest wholesale prices of pulses, sugar and processed food marginally came down during the week.

Even the index for fuel, power, light and lubricants, which have a 14.23 per cent weight in the WPI and manufacturing products with a 63.75 per cent weight, remained unchanged.

— With Reuters