The figure, calculated on the country's wholesale price-based index, rose 0.04% week-over-week from a previous rate of 7.57% on the back of rising prices of fruits, vegetables, tea, spice and some manufactured products, a Mumbai-(Bombay) based government spokesperson told CEP News.

The inflation figure is fast approaching its all-time weekly high of 7.76% which was last seen on Nov. 6, 2004. However, the spokesperson declined to comment on what the government's next move was likely to be.

Later, speaking on state television channel DD1, Finance Minister Palaniappan Chidambaram said, "Steps are taken with the intention that they will bear fruits inflation to stay at the current level before downward trend. More administrative steps will be taken as and when necessary."

He also said that Thursday's ban on futures trading for some selected commodities is an "administrative step" with the view to contain inflation.

The ban effective May 8, in place for the next four months, applies to futures trading of wheat, rice, gram, refined soya oil, potato and rubber.

By Gaurav Sharma, This email address is being protected from spam bots, you need Javascript enabled to view it , edited by Nancy Girgis, This email address is being protected from spam bots, you need Javascript enabled to view it