India's annual inflation rate accelerated to 4.11 percent on the back of higher food prices, latest data showed on Friday, lessening chances of any early interest rate easing. Inflation climbed to 4.11 percent for the week ended January 26 from 3.93 percent from the previous week, according to the wholesale price index, India's most watched cost-of-living monitor.
Inflation has fluctuated in recent weeks but stayed well below the central bank's ceiling of close to five percent for the fiscal year to March 31, 2008. The Reserve Bank of India last month held key rates steady, but said the risk of higher inflation had increased.