Food inflation eased sharply on account of the downward pressure exerted by items such as pulses and the base effect.
Based on the annual Wholesale Price Index, the food inflation estimate for the week ended July 9 was recorded at 7.58 per cent, down from the previous week's annual rise of 8.31 per cent.
The fuel and power index rose 11.89 per cent year-on-year, the same level of increase recorded during the previous reported week.
According to the data released by the Government today, prices of pulses went down by 7.67 per cent on a year-on-year basis. However, prices of other food items continued to rise.
The data comes a day after the Government said that pressure from headline inflation would remain till December on account of high international commodity prices.
Headline inflation stood at 9.44 per cent in June. It has remained consistently above the 9 per cent mark since December, 2010.
During the week ended July 9, onions became 19.68 per cent more expensive on an annual basis while fruits grew dearer by 15.84 per cent.
The price of milk was up 10.76 per cent and eggs, meat and fish grew almost 8 per cent more expensive.
Cereals and vegetables became dearer by 4.77 per cent and 4.31 per cent, respectively year-on-year.
Inflation of overall primary articles stood at 11.13 per cent during the week under review, down from 11.58 per cent in the previous week. Primary articles have a share of over 20 per cent in the WPI.
Meanwhile, inflation of non-food articles was at 15.50 per cent for the week ended July 9, compared with 15.20 per cent in the previous week.