The rate of price rise of food items fell to a single-digit during the week under review from a five-month high of 10.05 per cent in the previous seven-day period.
Finance Minister Pranab Mukherjee expressed hope that food prices will fall further after the festive season, even as he expressed concern over the high prices of non-food and fuel products.
"During the festive season, there will be some fluctuation (in food prices). But after that, moderating influence will continue," Mukherjee told reporters here.
As per data released by the government today, prices of pulses fell by 1.56 per cent year-on-year, while wheat became cheaper by 1.04 per cent during the week under review. Other food items, however, registered an increase in prices.
Onions became dearer by 42.03 per cent on an annual basis, while potato prices were up by 13.38 per cent and fruits grew 16.57 per cent costlier. Overall, vegetables became 22.42 per cent costlier.
Milk and cereals, too, became dearer by 9.12 per cent and 5.45 per cent, respectively, during the review period.
Agreeing with Mukherjee, economists said the price pressure on food items is likely to ease.
"Certain items like vegetables are expensive due to seasonal factors and supply disruptions on account of the monsoon. We expect them to stabilise," Crisil chief economist D K Joshi said.
Mukherjee, however, said the price situation in the non-food and fuel segments is still not encouraging.