Resuming its upward climb, the headline inflation in May rose to 9.06 per cent on costlier fruits, petrol and manufactured goods and heightened fears of another hike in interest rates by the RBI on Thursday.

Even as the increasing prices of essential items pushed up the inflation rate during the reporting month from 8.66 per cent in April, a concerned government said that more steps could be taken in the coming months to tame price rise.

"We would keep a close watch on developments, both domestic as well as international, in the coming months and make appropriate adjustments as we go along," Finance Minister Pranab Mukherjee said after the announcement of the May inflation numbers. (PTI)