India's retail inflation rate grew by 3.65 percent in February, up from January's 3.17 percent.
This mirrors flat demand as companies and households hit by note-ban induced cash crunch raised spending on goods and services.
In February 2016, consumer price index inflation grew 5.18 percent, indicating a more expansionary economy a year back.
Retail inflation information, measured by CPI, is the broadest metric to measure cost of living in India.
The recent price data released by CSO represents a pick up in pace of remonetisation, led by food price increase.
Consumer food price inflation is a metric to measure changes in monthly kitchen costs. It grew 2.01 percent as against 0.53 percent in January and 5.30 percent in February 2016.
Fruit prices have risen 8.33 percent in February, up from 5.81 percent in January. The price of prepared meals and snacks saw a negligible change at 5.45 percent growth in February and 5.54 percent in January.
The scrapping of high value notes led to less spending, decreasing the demand for perishable products, when the sudden currency recall exercise commenced.
Prices of veggies and pulses remained tepid. The growth in CPI for vegetables contracted to -8.29 percent in February from 0.70 percent in 2016.
Index for fuel and light witnessed a small growth at 3.90 percent in February from 3.42 percent in January.
Housing inflation remained almost flat and grew at 4.90 percent in February, compared with 5.02 percent in January.