Inflation rose by 0.95 percent to reach 8.43 per cent in December 2010. It was 7.48 per cent in the November.

The rise in inflation is due to increase in prices of certain food and non-food items. After moderating somewhat in November, the overall inflation, measured on the basis of wholesale prices, rose in December as vegetable, like onion, and other protein-based items became expensive.

As per the Whole sale Price index data released today in New Delhi, prices of food,non-food articles and minerals shot up by 16.46 per cent on an annual basis. However, prices of certain food items declined on a year-on-year. While wheat became cheaper by 5.09 per cent, pulses fell by 10.89 per cent and potatoes went down by 26.57 per cent.

During the month, fuel and power prices went up by 11.19 per cent, while manufactured goods became expensive by 4.46 per cent on an annual basis.

Within manufactured products, sugar prices eased by 9.91 per cent and leather and leather goods by 1.23 per cent on an annual basis. Government yesterday announced several measures to contain price rise including de-hoarding operations and closely monitoring export and import of food items.