Question: How do I upgrade my CentOS installation to a higher version?
Answer: Using YUM you can upgrade CentOS with only a few steps.
1. Backup your important data. If most or all of is in a database, make sure to backup all databases.
2. List all of the updates:
# yum list updates
3. Upgrade your distribution:
# yum update
4. Reboot the server:
# reboot
5. Verify that all systems are working:
# uname -a
# netstat -tulpn
# tail -f /var/log/messages
# tail -f /path/to/log/file
# cat /etc/redhat-release
Note: Because the kernel will be upgraded, you will need to reboot the server after completion, so you should plan a scheduled down time when your website(s) will have the least amount of activity.
Source: nixCraft