Mumbai: The annual rate of inflation based on the wholesale price index rose above a three-year high at 7.41 per cent for the week ended March 29, against 7.0 per cent in the previous week, mainly on account of rising prices of fruits and vegetables, pulses, cereals, condiment and spices and some manufactured items.

Inflation rate stood at 5.94 per cent in the corresponding week a year ago.

During the week, prices of fruits and vegetables shot up by three per cent, that of pulses by 1.2 per cent, condiments and spices by two per cent and wheat and fish marine rose by one per cent each.

Prices of milk and maize softened by one per cent while minerals group prices were up, mainly driven by prices of limestone which jumped 14 per cent.

In the manufactured category, sugar prices rose two per cent while groundnut oil and khandsari were dearer by one per cent each. However, imported edible oil got cheaper by 5 per cent and sunflower oil by 3 per cent.

The high inflation rate may prompt the Reserve Bank of India to take tough monetary measures to ease inflationary pressure in its annual credit policy, scheduled to be announced on April 29.