Meanwhile, the deflation in fuel and power category narrowed to -0.71 per cent in February from -2.78 per cent in January. The prices for cooking gas decelerated (0.9 per cent) while the prices of petrol (-4.21 per cent) and high-speed diesel (-3.2 per cent) remained in contraction during the month.

U.S. wholesale inflation decelerated last month, suggesting that price pressures are easing for now. The Labor Department reported Thursday that its producer price index — which tracks inflation before it reaches consumers — was unchanged from January after rising 0.

The fuel and power sector experienced a deflation of 0.71 percent in February, compared to a deflation of 2.78 percent in January.