The wholesale price index based inflation for May came in at a higher-than-expected level of 7.55 per cent.
This is higher than the inflation level of 7.23 per cent recorded in April this year.
The WPI inflation for May 2012 was driven by higher food and fuel prices. Food articles prices was up 10.74 per cent (8.25 per cent) on an annual basis.
On the other hand, fuel and power category saw 11.53 per cent rise in prices for the month under review.
India's headline inflation for May 2011 had touched 9.53 per cent.
Meanwhile, the Centre has now revised upwards the wholesale price index based inflation for March 2012 to 7.69 per cent from level of 6.89 per cent announced earlier.
The latest economic data impede chances of a policy rate cut by the Reserve Bank of India at its upcoming policy review meet on June 18, say economy watchers.
PTI reports: Prices of potato, pulses and wheat spurted, although onion and fruits showed a declining trend.
Overall food inflation rose to 10.74 per cent in May, from 10.49 per cent in the previous month. Food articles have 14.3 per cent share in the WPI basket.
Potatoes turned costlier by 68.10 per cent during May on an annual basis. For April, the rate of price rise was 53.44 per cent. Besides, pulses and wheat turned expensive by 16.61 per cent and 6.81 per cent respectively.
Vegetables basket
However, vegetables inflation was lower at 49.43 per cent in May. In April, the rate of price rise was 61 per cent.
Eggs, meat and fish prices rose 17.89 per cent during the month, slightly higher than 17.54 per cent in April, the official data released today showed.
Inflation in milk was 11.90 per cent, while rice and cereals turned costlier by 5.07 per cent and 5.73 per cent respectively.
Onion prices declined (-)7.23 per cent in May. The rate of decline was (-)12.11 per cent in April.
Non-food manufactured inflation showed some easing and was 5.02 per cent in May. It was 5.12 per cent in April.
The headline inflation number for March was revised upwards to 7.69 per cent, from the provisional estimate of 6.89 per cent.