After staying above the double digit figures for around a year, the food inflation came down to single digit figures for the 13 months-low and touched a low figure of 9.53 per cent during late July.

But this has not dented the fear that there will be a further interest rate hike in the Central bank's September review.

After touching a low of 9.67 per cent during the previous week in review, the figures touched 9.53 per cent for the above mentioned period.

During this time, the fuel price index continued to rise and touched a figure of 14.26 per cent as against 14.29 per cent during the previous week.

Finance Minister Pranab Mukherjee said on Thursday that the inflation has shown signs of cooling down because of the efforts of the Central government and the vigilance that the RBI has shown.

"It (RBI) is keeping a watch on the demand side and if it is found that demand side needs to be taken care of and if it is necessary then adjustments will have to be made," he said in his reply to a debate on inflation in the Rajya Sabha.