The Indian wholesale price index based inflation scored to a 15-month high of 8.56% for the month of January, while the data is showing that inflation had primarily spread to the manufacturing sector, and creating pressure on central bank to hike rates at the earliest.

However, the majority of economists state that the rates would have to be hiked, as opinion is divided on the timing of the move after a key RBI.

In last week's report the RBI's official said, "Rates are going to be reviewed only in April monetary policy, barring unparalleled event."

Due to the inflation, the Bombay Stock Exchange Sensex also fell 114 points to close at 16,038.85 points.

The RBI governor Mr. D Subbarao has said in the January 29 July monetary policy review "The increases in the prices of manufactured goods have accelerated over the past two months."

As far as inflation is largely limited to manufactured food and depends on supply side, contraction rates would not have helped.

As per the Citi economist Rohini Malkani, "Since the inflation is spreading elsewhere, rate increase on manufactured goods has become almost a certainty."

WPI reports the inflation is already breaching the RBI's 10 Mar estimates and CPI running in the 15%-17% range.