Mumbai: The annual rate of inflation based on the wholesale price index rose to a 44-month high of 7.83 per cent for the week ended May 3 from 7.61 per cent in the previous week, mainly on account of rising prices of food items and some manufactured products.

The inflation rate touched 7.87 per cent during the week ended 11 September  2004 as per provisional figures.

For the corresponding week a year ago the inflation rate was lower at 5.74 per cent.

During the week under review, prices of food articles like fruits and vegetables, spices, coffee, masoor have gone up.

Prices of fruits and vegetables went up by three per cent, coffee by six per cent, maize by four per cent and spices and masoor by one per cent each.

In the manufactured products category, prices of food articles like atta, coconut oil and khandsari went up.

While prices of cement, iron and steel declined, some industrial fuels like naphtha, furnace oil and light diesel oil became costly.

Analysts expect the inflation rate to rise to eight per cent in coming weeks even as earlier provisional estimates are being revised upwards.