The country's annual food inflation dropped a bit to 16.12% for the week ended June 5 as against 16.55% for the week before even as prices of milk, lentils and some other commodities remained up over a 52-week period.

According to data released by the commerce and industry ministry, the decline in the inflationary rate was mainly due to a 1.1% fall sub-index for food articles over the week under review in the overall official wholesale price index.

In actual fact, the index for primary articles was significantly up at 16.86% as the sub-index for non-food items registered a relatively faster jump of 18.25%.

Planning Commission Deputy Chairman Montek Singh Ahluwalia on Wednesday stated that the country's annual food inflation may increase over the next few weeks owing to the base effect of last financial year but will fall finally as the whole situation was under control.

Finance Minister Pranab Mukherjee also showed worry over increasing food prices but said that there were signals of easing off.

Key policymakers admitted that inflation was getting broad-based, with a consensus emerging for the central bank to hike interest rates soon and not wait for the review of its monetary policy stance in July.

"I think the picture is clear. Inflationary pressures are stronger," said C. Rangarajan, chairman of the Prime Minister's Economic Advisory Council and a former governor of the central bank. "Some action will be called for by RBI in terms of policy tightening." (With Inputs from Agencies)