"Food inflation at this level is not acceptable and we are trying our best to control it along with the cooperation of state governments," Mukherjee told reporters here.
He said he would be meeting the state finance ministers on January 19 to discuss among other issues, price rise.
Food inflation fell for the first time in six weeks to 16.91 per cent for the week ended January 1, but still remains high as vegetables like onion, and protein-based items turned expensive.
Rising food prices also pushed up overall inflation for December to 8.43 per cent, from 7.48 per cent in the previous month.
"WPI month wise has been moderating though it is more than it was in month of November... But it is little less than month of October," he said.
In October, the WPI inflation was 9.12 per cent.