The country’s annual inflation rate has climbed up to over three-year high of 7.41 percent for the week ended on March 29 on the back of increasing pressure on the central bank to further tighten up supply of money in its approaching annual credit policy later this month.

The wholesale price-based inflation, which was 7% during the last week, increased this time mainly because of growing rates of fruits and vegetables, pulses, cereals, condiment and spices and a few manufactured items.

Inflation climbed up regardless of high base of 5.94% in the same period of the last year, negating market prospects in the range of 7.05%.

The rising inflation may motivate RBI to take strong monetary actions in order to relieve inflationary stress in its twelve-monthly credit policy, planned to be declared on April 29.

On Thursday (April 10), Dr Manmohan Singh had even told that lofty food prices may harm economic growth and economic reformation process.

The prices of fruits and vegetables increased by 3% during the week, whereas pulses went up by 1.2 per cent, condiments and spices by 2 per cent, wheat and fish marine each rose by 1 per cent.

But, prices of milk and maize came down by 1 per cent, and the minerals group zoomed due to increasing prices of limestone which jumped 14 per cent and steatite also moved by 2 per cent.

In the manufactured group, sugar prices augmented by 2%, groundnut oil and khandsari become costlier by 1 per cent. However, prices of imported edible oil got cheaper by 5 per cent and sunflower oil by 3 per cent.