Food prices fell for the second consecutive week as food inflation remained in the negative zone. It was minus 2.90 per cent for the week that ended on 31st of last month.

Food inflation, as measured by the Wholesale Price Index, stood at minus 3.36 per cent in the previous week. It was above 19 per cent in the corresponding week of 2010.

According to an official release issued today, vegetables became 49.03 per cent cheaper during the week ended December 31. The fall in the rate of price rise of food items since the first week of November is substantial, as it has plummeted from double-digit territory into the negative zone.

However, other food products became more expensive on an annual basis, led by protein-based items.

Pulses were 14.72 per cent costlier during the week under review, while milk grew dearer by 10.79 per cent. Egg, meat and fish prices were up 15.22 per cent year-on-year.

Fruits also became 9 per cent more expensive on an annual basis, while cereal prices were up 2.03 per cent.

Reacting to the development, the Finance Minister Mr. Pranab Mukherjee said that the trend will continue till March this year. He told reporters that it will help to bring the headline inflation to managable levels.

Headline inflation has been above the 9 per cent-mark since December, 2010. It stood at 9.11 per cent in November, 2011.