Retail inflation for the month of February fell to 4.4 percent against to 5.07 percent in January 2018, according to data released by the Central Statistics Office on Monday.

On a year-on-year basis, the CPI inflation was 3.65 per cent in February 2017.

However, the 4.4 percent level is above the 4 percent medium-term target of the Reserve Bank of India (RBI).

The inflation data raises hope that the central bank may hold rates steady at its April meeting rather than raise them.

Analysts polled by Reuters had predicted February’s rate would ease to 4.8 percent from 5.1 percent in January. Forecasts ranged from 4.4 percent to 5.6 percent.

Consumer food prices rose 3.26 percent in February, compared with 4.70 percent in January, as prices of pulses fell more than 17 percent from a year earlier.