NEW DELHI (AFP) - Indias double-digit inflation edged higher in June, touching an annual rate of 10.55 percent, official data showed Wednesday, stoking pressure for another interest rate hike this month. The inflation increase, which comes ahead of the central banks quarterly policy meeting on July 27, was mainly due to a rise late last month in fuel costs as well as an increase in food prices, the data showed. The wholesale price index, Indias main cost-of-living measure, rose to 10.55 percent from a year earlier after a 10.16 percent increase in May. High inflation is a lightning rod for political unhappiness in the country, where hundreds of millions of people live below the poverty line. Prime Minister Manmohan Singhs Economic Advisory Council warned Tuesday the central Reserve Bank of India (RBI) might tighten monetary policy further due to the persistent rise in prices and capacity constraints in factory output. If inflation level persists at double-digit levels... some action on the demand side is needed and some action on the part of RBI is required until more industrial capacity comes on stream, council chairman C. Rangarajan said. Earlier this week, data showed Indias industrial output decelerated sharply to 11.5 percent in May, its weakest pace in seven months, as factories ran into capacity constraints after months of breakneck expansion. The central bank has raised rates three times since March, including twice this month. Aprils inflation reading was revised higher to 11.23 percent a 19-month peak, the data showed. But the central bank expects inflation to soften to 5.5 percent by the end of the financial year to March 2011, helped by expected plentiful monsoon rains, which should increase harvests and ease food prices. The opposition has blamed Singhs Congress-led government for failing to keep a check on prices since it was returned to power in elections last year.