New Delhi, March 15 (IANS) Driven by increasing food prices, India's annual rate of inflation, based on the wholesale price index, rose to 9.89 percent in February from 8.56 percent in the previous month, official data revealed Monday.

The annual inflation rate was 3.5 percent in February 2009.

The latest data released by the commerce ministry showed food prices jumped 17.79 percent last month, while those for primary articles rose 15.54 percent. Manufactured products were up 7.42 percent.

Prime Minister Manmohan Singh March 5 admitted in parliament that price rise was a cause of worry and assured the house that all possible steps were being taken to contain it.

In January, India's central bank, the Reserve Bank of India, had raised its forecast for wholesale price inflation for the current year ending March 31 to 8.5 percent from 6.5 percent.

The government has also completed its market borrowings of Rs.4.51 trillion ($9 billion) for the current fiscal.