Annual food inflation fell to 12.47 per cent for the week ended July 10 from 12.81 per cent in the previous week on back of decline in prices of vegetables, especially potato and onion.

On a yearly basis, potato became cheaper by over 45 per cent and onion by nearly 8 per cent. Overall vegetable prices fell by 9.92 per cent.

Prices of pulses, however, were higher by 23.79 per cent during the week under review over the same period last year.

On a weekly basis, pulses rates softened by 0.84 per cent.

Wheat prices were higher by 5.81 per cent during the week on yearly basis.

Overall inflation for June was 10.55 per cent, led by high food prices. Food inflation has remained above the 16 per cent level for most part of the year, before falling sharply to below 13 per cent since mid-June.