India's wholesale inflation rose to a higher-than-expected 7.55 per cent year-on-year in August, from the 6.87 per cent in the previous month, dpa cited government data as showing Friday. The figure had been predicted to reach 7 per cent, according to an earlier poll of 15 economists by broadcaster NDTV. Economists said low rainfall in July may have pushed up food prices and been the main cause of the unexpected rate hike. The data was released ahead of a policy meeting of the Reserve Bank of India on Monday, when the central bank was likely to hold key interest rates despite India's slowing economic growth. On Thursday, the government announced a 14-per-cent hike in the price of diesel, which was expected to boost other costs further. The fuel price hike drew protests from the public, opposition parties and some members of the ruling coalition. But stock markets appeared to welcome the move, which the government said would help reduce the fiscal deficit. The benchmark Sensex rose 2.34 per cent to 18,443.73 as of 2.15 pm (0845 GMT), a gain of 422 points, and its highest level since February. The 50-share S&P CNX Nifty on the National Stock Exchange was up 1.71 per cent at the same time, to 5,528.