New Delhi  - India's inflation rate rose to a new double-digit high of 12.01 per cent, the highest since 1995, on higher prices for pulses, spices and other food items, government data showed Thursday.

The annualized inflation rate, which has been linked to India's wholesale price index, moved up by 0.03 per cent from 11.98 per cent in the previous week.

Higher prices of essential food items and manufactured products over the past month have seen inflation touch a 13-year high since such figures were last recorded in May
1995.

The Indian Finance Ministry maintained that inflation had "continued to remain stable."

Local media reported that although the inflation rate was not recording sharp spikes like in the past few months, officials were clearly worried it had crossed the 12-per-cent mark.

The Indian government has been planning to rein in inflation between 5 and 6 per cent and has taken a number of measures to tighten monetary policy.

Senior officials including Federal Reserve Bank of India Chairman YV Reddy believe that the country's inflation will ease below the double-digit mark in the next two to three months. (dpa)