Annual food inflation fell to 10.35 per cent for the week ended August 7, as prices of vegetables, specially potato and onion, declined. Food inflation, which was 11.40 per cent for the week ended 31st of July, is in double digits for the second consecutive week, after it remained in single digit for a fortnight in mid-July. On a yearly basis, potato became cheaper by almost 50 per cent, while vegetables overall saw a decline of 22.12 per cent. Cereals prices, however, rose by 7.40 per cent driven mainly by higher prices of pulses, rice and wheat compared to the same period last year. Among other food items, milk prices soared by 19.03 per cent during the week compared to the same period last year, while that of fruits went up by 16.74 per cent.