The depreciating inflation once again turned north wide and showed highest rate of inflation of the year in essential commodities, which can mount pressure over the policy makers to take some strict action to curb rising inflation.
According to Thursday released Wholesale Price Index (WPI) - price of a representative basket of wholesale goods - data, inflation moved up to 7.55% in May as against 7.23 per cent in April because price shoot up in potato, pulses and wheat.
However, onion and fruits became cheaper in this month, as per WPI index data.
Last year, for the same period, the WPI was 9.56%.
The food prices played a major role in upping inflation which shoot up to 10.74% as against April's Overall Food Price Index of 10.49%.
This rocketing inflation may hamper the chances of policy rate cut, which is scheduled on June 18, 2012.
However, market experts are still optimistic over rate cut in interest rate.
The rate cut in interest will boost the overall growth which has also registered lower at 6.9% as against expected level of 7.4%.
The Reserve Bank of India (RBI) in its quarterly monetary review may make changes in its key policy rates including base rate.
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