According to the data, the WPI, used as a measure of inflation, rose 0.8 pc to 248.5 from 246.5 in Dec 2009.
Sugar prices rose by 58.96 per cent in Jan year-on-year while potatoes turned costlier by 53.39 per cent and pulses by 45.64 per cent.
On monthly basis, prices of masur increased by 9 per cent, arhar by 6 per cent and wheat by 4 per cent.
Fuel index rose by 1.8 per cent due to higher prices of naphtha that rose 21 per cent.
Furnace oil rose 6 percent while bitumen, non-coking coal and light diesel oil rose 3 per cent each.
The Reserve Bank of India (RBI) had projected inflation will be around 8.5 per cent by the end of the current financial year in Mar 2010.