Mumbai: The annual rate of inflation based on the wholesale price index rose further to 5.11 per cent for the week ended March 1, from 5.02 per cent in the previous week, official data showed.

This is the highest rate since the 5.15 per cent level reached on 26 May 2007. The inflation rate has also stayed above the 5 per cent level for the second consecutive week, at which the Reserve Bank wants to limit inflation in the fiscal year ending March.

At the end of 2007, inflation was running at 3.8 per cent but rising prices of crude oil and soaring food and commodity prices are now being reflected in inflation data.

Inflation rose further above 5 per cent in early March to a fresh nine-month high, and analysts said mounting price pressures would keep monetary policy tight despite more signs this week of slowing growth.