Month-on-month, consumer prices dropped 0.37 percent, data showed.
India's consumer price inflation slowed in February, data from the Central Statistics Office showed Monday.
Index of Industrial Production (IIP) or factory output for the month of January 2018 jumped by 7.5% - higher compared to previous month in December 2017 where it stood at 7.1%, however the indicator was lower compared to 5-year mark of 8.8% in the month of November 2017.
In what may be seen as improving economic conditions, retail inflation in February eased to 4.4 per cent while industrial production jumped up 7.5 per cent in January. In February 2017, however, it was 3.65 per cent. Inflation in vegetables was 17.57 per cent in February against 26.97 per cent in January.
As per Use-based classification, the growth rates in January 2018 over January 2017 are 5.8% in Primary goods, 14.6% in Capital goods, 4.9% in Intermediate goods and 6.8% in Infrastructure/ Construction Goods.
"IIP number and consumer inflation will be key to watch in the next week as Bank Nifty has the highest weightage and is trading below the 200-day average", said Vikas Jain, Senior Analyst, Reliance Securities. However, the mining sector saw a flat growth of 0.1% compared to 8.6% a year ago.
As many as 16 of the 23 industry groups registered positive growth during the month when compared to the corresponding period in 2017.
However, the rate of price increase was higher for transport and communication services at 2.39% (1.97% January).
The inflation rate is in below expectations as a Reuters survey of 30 economists had predicted it to come at 4.80 per cent.
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