Agence France-Presse . New Delhi

India's annual inflation rate accelerated to a six-month high, driven by higher vegetable and other food prices, data showed on Friday, with prices expected to rise further due to a fuel hike.

Inflation climbed to 4.35 per cent for the week ended February 9 from 4.07 per cent the previous week, according to the wholesale price index, India's most watched cost-of-living monitor.

It stood at 6.52 per cent in the same week a year ago. Inflation in Asia's third largest economy has fluctuated in recent months but has been inching closer to the central bank's ceiling of close to five percent for the fiscal year to March 31, 2008.

The central bank last week said India's inflation rate was high by global standards and needs to be brought down further. The bank has raised interest rates nine times since 2004 to keep prices in check amid an economic boom. The economy expanded 9.1 per cent and has grown at an annual average rate of 8.6 per cent in the past four years.

But economists have warned of an economic downturn because of high interest rates, increasing food and oil prices, a rapidly rising rupee and weakening global demand. Prices of fruits, vegetables, lentils and spices all rose, according to the latest data which marked the third week in a row that inflation has been above four percent.

Economists expect inflation to gather pace following a rise in state-set petroleum prices announced on February 14. The increase — the first in 20 months — was aimed at reducing losses at government-owned oil companies reeling from surging global crude prices. The price fuel rise will be reflected in next week's inflation figures.

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