India's year-on-year inflation rate as measured by the consumer price index rose to 3.43 per cent in January from 3.2 in December, a government statement said on Wednesday.

In January 2002, consumer price inflation was 4.94 per cent.

The data contrasted with the more widely tracked wholesale price index which has shown inflation running at a marginally higher pace in recent weeks due to rising oil prices and an increase in demand for manufactured goods.

The WPI is tracked by economists to monitor inflation because of quicker availability of data and a wider basket of commodities.

Figures released on Sunday showed the WPI inflation rate fell marginally to 4.91 in the week ended February 15 from 5.04 percent in the previous week.

Analysts say the WPI inflation rate is likely to stabilise at four-percent plus levels in Asia's third largest economy.

They said an increase in global crude oil prices was a concern as India imports 70 percent of its crude oil requirement and any hike in global oil prices impacts prices in the country.