Sliding for the third straight week, food inflation fell to 12.85 per cent for the week ended October 23, as prices of vegetables, especially potato and onion, softened due to improved supplies.
Food inflation stood at 13.75 per cent for the week ended October 16, government data showed.
On annual basis, potato prices were sharply down by 51.22 per cent and vegetables became cheaper by 4.20 per cent. Onion prices, too, eased 0.13 per cent.
However, other essential items like cereals, milk and fruits continued to remain costly. On annual basis, cereals prices rose 4.07 per cent. While pulses became costlier by 0.67 per cent on a yearly basis, wheat and rice prices increased 4.36 per cent and 3.17 per cent, respectively.
Among other food items, milk prices soared 21.72 per cent during the week, compared to the same period last year, while fruit rates rose 16.03 per cent.
Egg, meat and fish became dearer by 28.85 per cent on an annual basis.
Although prices of some perishable food items eased, demand supply mismatch continued in several essential commodities.
"Notwithstanding moderation, food price inflation has remained persistently elevated for over a year now, reflecting in part the structural demand-supply mismatches in several commodities," Reserve Bank of India had said in its second quarter review of monetary policy on Tuesday.
After some moderation in July, food inflation remained high during August and September, due to supply disruptions caused by heavy monsoons.
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