Retail Inflation soars to 3.65 per cent in February

Retail inflation rose to a four-month high of 3.65% in February this year, mainly due to an increase in the prices of food items.Inflation measured in terms of the Consumer Price Index had stood at 3.17 per% in January this year. Retail inflation was 5.26% in February last year.According to data released by the Central Statistics Office, retail inflation in food items rose to 2.01% in February, from 0.61% in January.But prices of vegetables declined by 8.29% and of pulses by 9.02%The increase in prices may weaken the case for an immediate interest rate cut by the RBI, which had kept lending rates unchanged at the last review in February, citing risks to inflation.