".sixteen of the 23 industry groups in the manufacturing sector have shown positive growth", said an official release, adding that the sharpest increase was seen in manufacture of transport equipment, pharmaceuticals and computer and electronic products.
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.
Earlier foreign brokerage Morgan Stanley had said retail inflation is expected to moderate and print at 5 per cent after rising consecutively for five months, helped largely by seasonal dip in vegetable prices, while trade deficit is also likely to improve.
Figures from the Office for National Statistics (ONS) showed Consumer Price Index (CPI) inflation was driven up by expensive tickets to family attractions though this was offset by weaker fuel price rises. BoE policymakers have pointed to rising wages as a possible reason to increase rates, although headline data still shows average growth in weekly earnings well below the rate of inflation, squeezing on living standards.
The NBS disclosed this in its CPI report for January 2018 released on Wednesday in Abuja.More news: Australia hammers England by 7 wkts
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"The inflation and inflationary outlook suggest that RBI is likely to remain in a pause mode at least during the first half of 2018 and, if warranted, may take a view in the second half", said Sunil Sinha, Principal Economist, India Ratings & Research.
"We will be looking for an increase when the ONS reports next week".
A separate report showed USA retail sales unexpectedly fell in January and December figures were revised downward, suggesting consumer spending is on a slower track in the first quarter.
There is also a roughly 50% chance of a further increase in rates to 1% by the end of the year - a level last seen in 2009.
Other items contributing to the gain in CPI included rents and owners' equivalent rent, which both rose 0.3 percent from December; medical care, up 0.4 percent; and motor vehicle insurance, which advanced 1.3 percent, the most since 2001.
Structural factors like "an ageing demographic and the rise of disruptive technologies" should also continue to exert a downward pressure on inflation, says Brettell. Favourable base should result in strong IIP growth even for the coming months. Nevertheless the recovery will be uneven, and the 8.4% IIP reading may not sustain. Manufacturing growth was recorded at 8.4% for December in comparison to November's 10.2%. These so-called core retail sales correspond most closely with the consumer spending component of gross domestic product.