Inflation fell by 2.80 percentage points for the week ended 17th July from 12.47 percent in the previous week, as prices of vegetables, especially potatoes and onions,declined.
On a yearly basis, potatoes became cheaper by over 46 percent and onions by over 10 percent.
Overall vegetable prices fell 14.77 percent, according to data released by the government on Thursday.
However, prices of pulses, milk and fruits rose by 21.23 percent, 19.03 percent and 12.14 percent respectively.
On a weekly basis, prices of onions fell by 0.66 percent, while that of potatoes inched up by 2.06 percent.
Overall vegetable prices on a weekly basis went down by 0.34 percent.
On annual basis, rice became costlier by 5.31 percent though it softened by 0.64 percent on a week-on-week basis.
Similarly, prices of cereals rose by 5.62 percent on a year-on-year basis, but fell 0.04 percent week-on-week.
Overall inflation, which includes prices of manufactured goods, was 10.55 percent in June, led by high food prices.
Food inflation has remained above the 16 percent level for most part of the year, before falling sharply to below 13 percent since mid-June.