New Delhi: Inflation rose to 11.89% mainly due to higher prices of essential food items and some manufactured products such as cement and edible oils, which may prompt RBI to further tighten money supply in its quarterly review slated for 29 July.
During the week ending June 28, inflation moved up by 0.26% from 11.63% in the previous week and 4.42% in the corresponding week a year ago.
The wholesale price index-based inflation inched up on account of higher prices of fruits, vegetable, pulses, spices, and bajra.
Despite attempts made by the government to tame price rise, items like cement and edible oils became costlier during the week.
Rising inflation may force RBI to further hike short term interest rates as well as statutory deposit requirements when it reviews the credit policy later this month.
It has already increased repo rate and CRR by 0.5% each to tame inflation on 24 June.