Inflation climbs to 8.75 percent

New Delhi, June 13 : The annual inflation rate has soared to a seven year high of 8.75 per cent for the week ended May 31.

It was recorded at 8.24 per cent in the previous week, according to the Wholesale Price Index.

This is the highest level of inflation during the United Progressive Alliance (UPA) regime. The annual inflation rate for the week ended August 28, 2004, was 8.74 per cent.

Rising food and vegetable prices contributed for 0.51 per cent increase in inflation from 8.24 per cent in the preceding week.

Prices of foods and vegetables, cereals, milk, spices and some manufactured products have gone up Among the manufactured products, prices of mustard oil and groundnut oil have recorded a surge.

Reserve Bank of India (RBI) on Wednesday increased its short-term lending rates to banks by 25 basis points to check inflation.

The figure may cross 9 percent when the impact of fuel price rise is taken into account.

ANI