New Delhi, Feb 15 - India's annual rate of inflation, based on the wholesale prices index, rose to 8.56 percent in January from 7.31 percent in the previous month, driven by increasing food prices, official data released Monday showed.

The annual inflation rate was 4.95 percent in January 2009.

The latest data released by the commerce ministry showed prices of food articles jumped 17.4 percent last month, while those for primary articles rose 14.5 percent, and manufactured products was up 6.55 percent.

In January, India's central bank, the Reserve Bank of India had raised its forecast for the wholesale price inflation for the current year ending March 2010 to 8.5 percent from 6.5 percent.

The government has completed its market borrowing of Rs. 4.51 trillion ($97 billion) for the current fiscal year. (IANS)