Indian headline inflation rebounded to 9.06 percent in May from 8.66 percent in the previous month due to pricier fuel prices, according to a press statement by India's Ministry of Commerce and Industry Tuesday.

The petroleum price index saw a 27.31 percent year-on-year growth in May from 21.81 percent in April.

The inflation with manufactured products also worsened to 7.27 percent from 6.18 percent in April due to price increase of sugar, edible oil, cotton textile, iron, machinery and others.

Still, inflation with primary articles eased to 11.3 percent from 12.05 percent in April on the softening of food prices.

Meanwhile, the inflation figures in March was revised up to 9. 68 percent from 9.04 percent in earlier estimates.

The hardening of inflation was anticipated and will bring more pressure for Indian central bank to continue monetary tightening this Thursday.

The number is much higher than expected and a breach of nine percent mark without a diesel price revision and in a month when global commodity prices were softer highlights the underlying inflationary pressure in the economy and validates the case for further tightening by the RBI, said Anubhuti Sahay, an economist with Standard Chartered.

Indian central bank is expected to raise key interest rates by 25 basis points Thursday again on its mid-quarter monetary report.

India was urged to actively guard against risks of high inflation and volatile capital flows as the country is poised for steady growth, according to a report released Tuesday by Organization for Economic Cooperation and Development in New Delhi.

The increase of Indian wholesale price index has hovered above eight percent since January 2010 with India's central bank hiking interest rates for nine times since March 2010 to tame persistent inflation.