Food inflation rose for the second consecutive week, pushed by higher prices of fruits, pulses and milk to 16.74 per cent, prompting speculation that the Reserve Bank may tighten money supply at its policy meet next month.

Food prices increased by 0.19 percentage point for the week ended May 29 from 16.55 per cent in the previous week.

Prices of pulses shot up by 31 per cent, that of milk by 21.1 per cent and fruits by 18.7 per cent.

Consumer staples, such as rice and wheat, turned costlier by 7 per cent and 3 per cent respectively.

However, prices of potatoes and onions eased by 30.87 per cent and 12.27 per cent respectively.

The RBI, according to analysts, may take steps to control money supply in a bid to cool inflation, which has remained at an elevated level despite moderation from 20 per cent in December.

The central bank is scheduled to announce its first quarter review of monetary policy on July 27.

The RBI may tighten monetary policy in the quarterly review next month, said Crisil Chief Economist D K Joshi.

"Food inflation would remain range-bound until next harvest season as there has been no sustained decline in food items. Once monsoon arrives, cereal prices may see a decline.

So, food inflation would ease in the second half of the fiscal," he said.

On week-on-week basis, prices of beef rose by 8 per cent, that of sea water fish by 3 per cent and arhar, moong and fruits and vegetables by one per cent each.

However, bajra prices fell by a per cent.

Earlier this week, Planning Commission deputy chairman Montek Singh Ahluwalia had said that inflation was likely to fall to 5-6 per cent by the end of the year.

"Inflation is too high to be comfortable...it is now decelerating...I am sure that by the end of this year, it will come down to 5-6 per cent," Ahluwalia had said.

In April, the wholesale price-based inflation stood at 9.59 per cent, slightly lower than the March number. The RBI has pegged the wholesale price-based inflation at 5.5 per cent in the current fiscal.