This makes the RBI decision on March 19 to cut interest rates extremely difficult.

Retail inflation, measured by the Consumer Price Index (CPI), 10.91% in the month of February 2013, higher from 10.79% during the previous month.

The CPI index measures retail prices in major food groups, fuel, clothing, housing and education across rural and urban India.

Bond yields went up following the inflation data on worried that the RBI will not cut rates in its monetary policy review.

The corresponding inflation rates (provisional) for rural and urban areas are 11.01 % and 10.84 % respectively.

Inflation rates (final) for rural, urban and combined for January 2013 are 10.79 %, 10.73 % and 10.79% respectively.

Provisional annual inflation rates of February 2013 for rural, urban and combined in respect of ‘food and beverages' are 13.53%, 13.87% and 13.73% respectively.

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