Food inflation fell to 9.03% for the week ended August 6, even as the price of all items barring pulses rose on an annual basis.
Food inflation, as measured by the Wholesale Price Index (WPI), stood at 9.90% in the previous week. The rate of price rise of food items was 14.51% in the first week of August, 2010.
As per data released by government today, price of pulses became cheaper by 5.63% year-on-year during the week under review. However, all other items continued to remain expensive.
Onions were 37.62% more expensive on an annual basis during the week ended August 6, while prices of fruits went up by 26.46%.
Eggs, meat and fish became dearer by 9.93% and the price of milk was up 9.76% year-on-year.
Cereals and vegetables were up by 6.23% and 2.59%, respectively, while potato prices climbed by 7.22%.
The fall in food inflation numbers could be attributed to a moderation in the rate of price rise of some of the items on a week-on-week basis, even though they continued to grow.
In the previous week ended July 30, the rate of price rise of items like vegetables, potatoes, milk and egg, meat and fish was more on an annual basis in comparison to the week under review.
The decline could also be attributed to the high inflation figure of over 14% for the corresponding year-ago period, a phenomenon dubbed the 'high base effect' in economic parlance.
Overall, primary articles recorded 11.64% inflation for the week ended August 6, down from 12.22% in the previous week. Primary articles have a share of over 20% in the WPI.
However, inflation in non-food articles, which include fibres, oil seeds and minerals, went up to 16.07% from 15.05% in the previous week.
Meanwhile, fuel and power inflation stood at 13.13% for the week ended August 6, up from 12.19% in the week ended July 30.
Food inflation was in double digits for most of 2010, but started to moderate from March this year.
It fell to 7.33% in mid-July, before again rising to touch a four-and-a-half month high of 9.90% in end-July.
Headline inflation stood at 9.22% in June. The RBI has already hiked interest rates 11 times since March, 2010, to tame demand and curb inflation.
The Reserve Bank and the Prime Minister's Economic Advisory Council had projected headline inflation to remain high at around 9% till October.
In its Economic Outlook for 2011-12 released earlier this month, the PMEAC said that while pressure from food inflation has fallen in recent months, the rate of price rice still remains quite high, with the possibility of a further surge in coming months.
In his Independence Day address to the nation, Prime Minister Manmohan Singh said that sometimes the reasons for price rise lay outside the country and added that the government's efforts to tame inflation have not met with lasting success.
"The prices of petroleum products, food grains and edible oil have risen steeply in international markets in recent times. Since we import these products in large quantities, any rise in their prices adds to inflationary pressure in our country," Singh said.