After touching a three-year low in January, inflation increased marginally to 6.84 per cent in February driven by costlier food items and petrol but the rise may not dampen hopes of rate cut by RBI as non-food inflation has moderated.
Inflation based on the Wholesale Price Index (WPI) had declined to three-year low of 6.62 per cent in January 2013. However, in February 2012 it was 7.56 per cent.
In case of manufactured goods, inflation has moderated to 4.51 per cent in February compared to 5.82 per cent in the same month previous fiscal making case for easing of the monetary policy by RBI in its mid-quarter review on March 19.
"We believe that the RBI will do a comprehensive and nuanced analysis of the economy and take the right decision and we hope it will vote for growth. I am happy with what he (RBI Governor D Subbarao) has said (yesterday)," Economic Affairs Secretary Arvind Mayaram told PTI.
However, stubborn food inflation is still a matter of concern for government. Food and primary articles have shown higher annual price rise of 11.38 per cent and 9.70 per cent respectively, led by expensive onion (154.33 per cent) and potato (45.99 per cent). Besides wheat, vegetables, rice and cereals too became dearer.
Terming food inflation as "worrisome", Mayaram said rise in WPI inflation is largely on account of food inflation and it it is necessary to look at it.
"But if you remove the element of food from the calculation, then actually it has come down," he added.
Prime Minister's Economic Advisory Council Chairman C Rangarajan said RBI will take into account decline in inflation in case of non-food article group in its review.
"Clearly the decline in manufacturing inflation is the critical number that monetary authorities look at. Therefore, there is comfort in that direction," Rangarajan said.
