Inflation rises more than expected

Analysts said the unexpected increase in inflation would not alter the dovish monetary policy stance of the Reserve Bank, which has cut its repo rate 425 basis points since October to 4.75 percent to shield the economy from the global downturn.

But with some prices still firm and signs that the global economic downturn may be over the worst, further rate cuts may be limited, analysts said.

"This data supports our view that we are very close to the end of the rate cutting cycle and we may see a maximum of 25-30 basis points cuts from present levels as the economy starts to recover in the second half," said Shubhada Rao, chief economist at Yes Bank in Mumbai.

The wholesale price index , India's most widely watched inflation measure, rose 0.57 percent in the 12 months to April 18, more than double the annual rise of 0.26 percent in week-earlier data.

It was also above expectations for a 0.09 percent rise, reflecting a trend in recent weeks of stronger than expected inflation.