The Index of Industrial Production or IIP had grown at 2.4 per cent in December 2016, while for the month of November, 2017, it was revised upwards to 8.8 per cent from provisional estimates of 8.4 per cent released last month.
Of the 23 industry groups, 16 industries in the manufacturing sector have shown positive growth during the month of December 2017.
Prices were held down by lower increases in the cost of petrol and diesel compared to a year ago, while recreational activities - particularly zoos and gardens - pushed prices up overall.
If prices come in 1.9 or 2 percent higher, "that will then, I think, kick in perhaps another episode of what we saw last week", Curran added.
Consumer food price inflation, a metric to gauge changes in monthly kitchen costs, softened marginally, with prices rising 4.70 percent in January from 4.96 percent in December 2017.
US spies bilked for US$100000 by Russian peddling Trump secrets
They were also fearful of political fallout in Washington if they were seen to be buying scurrilous information on the president. The Russian also said he was holding on to the NSA cyberweapons "at the orders of senior Russian intelligence officials".
Teresa John, research analysts at Nirmal Bang, said, "we believe the impact of the increase in house rent allowance for government employees - as recommended by the Seventh Central Pay Commission - has likely peaked out with housing inflation rising only 0.36% MoM, down from 0.95% earlier".
Expectation of economists for the annual inflation in the U.K in January was at 2.9 percent.
What are they saying?: "This is a classic inflation scare", said Michael Arone, chief investment strategist of State Street Global Advisors, before the CPI report was issued. That could be balanced out, Wells Fargo Securities says, by another phenomenon: companies testing consumers' ability to afford higher price tags at the start of the year, something not always weeded out with seasonal adjustments. Sterling rose after Tuesday's data and was up by 0.5 percent against the dollar at 1035 GMT. Mining sector saw a 1.2% growth while electricity sector saw 4.4% growth.
The Index of Industrial Production (IIP) showed the growth of 7.1 per cent in December was mainly on account of an uptick in the manufacturing sector, which constitutes 77.63 per cent of the index. "India's growth story continues to march on", Prabhus said. Incoming data is also supportive of our hypothesis.
According to the bureau, this is 0.24 per cent points lower than the rate recorded in December (15.37 per cent). These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.