Inflation rose to 11.89 per cent, mainly due to higher prices of essential food items and some manufactured products such as cement and edible oils.


This may prompt RBI to further tighten money supply in its quarterly review slated for July 29.


During the week ending June 28, inflation moved up by 0.26 per cent from 11.63 per cent in the previous week, and 4.42 per cent in the corresponding week, a year ago.


Rising inflation may force RBI to further hike short-term interest rates as well as statutory deposit requirements when it reviews the credit policy later this month.


RBI has already increased repo rate and CRR by 0.5 per cent each to tame inflation on June 24.