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Fuel price hike led to double digit inflation: FM Inflation for the week-ended June 7 is at 11.05% Vs 8.75%. Inflation at 13 yr high The finance ministry had cautioned the cabinet about the effect of raising fuel prices on India's inflation, Finance Minister P. Chidambaram said here on Friday soon after inflation reached 11.05 percent. He also hinted at stronger monetary measures. As inflation for the week ended June 7 hit a 13-year high, Chidamabaram told reporters: "The increase in petroleum product prices has contributed 94 percent to the inflation recorded." The central government had on June 4 raised petrol prices by Rs.5 a litre, diesel by Rs.3 and cooking gas by Rs.50 a cylinder. "Double digit inflation was expected after the government decided to increase fuel prices," Chidambaram said. "We had cautioned the cabinet about this."