Food inflation dips to 16.61%

However, the fall in food inflation does not call for any celebration as the price pressure will remain till June with inflation spreading to manufactured items, economists warn. Besides rabi crops, the government is pinning its hopes on reports of normal monsoon for further decline in food prices.

On an annual basis, potatoes saw a significant fall of 28 per cent in prices on glut in supplies in various parts of the country and onions became cheaper by 10 per cent.