The annual rate of inflation based on the wholesale price index, which dipped from a 40-month high of 7.41 per cent to 7.14 for week ended 5th April, quickened its pace again and rose to 7.33 per cent for the week ended 12th April, mainly due to higher food prices.

For the week ended 12th April, the prices of some food items, including jaggery and fish, rose while prices of certain essential commodities like vegetables, cereals, pulses and edible oils softened.

The average rate of inflation, according to the official data, worked out to be 4.51 per cent during 2007-08 as compared to 5.42 per cent in the previous fiscal.

The spike in  inflation has prompted analysts to predict the Reserve Bank of India to further tighten money supply in its annual credit policy scheduled for 29 April.

On 17 April, ahead of the credit policy, in an unscheduled move the Reserve Bank raised the cash reserve ratio by 50 basis points in two phases to 8 per cent, to help contain inflation. The hike will come into effect in two tranches on 26 April and 10 May.

Inflation for the corresponding period last year was at 6.34 per cent. The average rate of inflation, according to the official data, worked out to be 4.51 per cent during 2007-08 as compared to 5.42 per cent in the previous fiscal.

Inflation figures for the week ended 16 February was revised from the provisional 4.89 per cent to 5.66 per cent.