Mumbai: The annual rate of inflation based on the wholesale price index further accelerated to 11.63 per cent for the week ended 21 June from its 13-year-high of 11.42 per cent in the previous week.

At 11.63 per cent, inflation rate is at its highest since the wholesale price index series began in 1995.

The current inflation is more due to an increase in the price of fruits, vegetables, imported edible oils, tea, sea fish, cement and iron and steel and spices, though the index for fuel items declined during the week.

Commerce ministry data showed an increase of four per cent in the price of tea while that of fruits and vegetables, food grains and marine products increased two per cent.

The government raised fuel prices by up to 10 per cent on 5 June as crude prices continued to rise.

The government revised inflation rate for the week ended April 26 upwards to 8.27 per cent from 7.61 per cent.

With inflation already above 12 per cent or expected to rise beyond 12 per cent soon, the benchmark 10-year bond yield rose to a seven-year high of 8.99 per cent in early trade.

The Reserve Bank of India (RBI) raised its key lending rate twice in June, taking it to 8.5 per cent. Analysts expects the RBI to hike the repo rate by 25 basis points at the July and the cash reserve ratio by 50 basis points in the third quarter.