WPI jumps to 39-month high of 6.55% in Feb

RBI may not cut rate at April meeting

Snapping a trend of last four months, both inflation numbers based on the consumer price index (CPI) and the wholesale price index (WPI) moved in the same direction, rising in February against the previous month.

While WPI inflation jumped to a 39-month high of 6.55 per cent in February compared to 5.25 per cent in the previous month, the CPI inflation rose to a three-month high of 3.6 per cent from 3.2 per cent.

The data justified the Reserve Bank of India's caution on loose monetary stance amid expected increase in interest rates in the United States in the next few days.