New Delhi, Jan 13 (IANS) Finance Minister Pranab Mukherjee Thursday said there was no need to panic about food inflation, adding that the government would announce steps to curb rising prices.

India's annual food inflation eased for the week ended Jan 1 but was still at a higher level of 16.91 percent, as per data made available by the commerce and industry ministry. The food inflation was 18.32 percent in the previous week.

"We have analysed the situation. We have indicated what further steps we are going to take. There should not be any unnecessary panic", said Mukherjee.

Mukherjee had Wednesday held discussions with Agriculture Minister Sharad Pawar, Planning Commission Deputy Chairman Montek Singh Ahluwalia and other senior government officials to finalise action on the issue.

"Last evening, steps were finalised. I think it should be announced today," Mukherjee told reporters on being asked what measures the government was taking to combat high food inflation.

After five straight weeks of rise in food inflation rate, based on wholesale prices, the fall in the index was because of some tempering in prices of onions, from the peak of Rs.70 per kg.

Prices of other essential commodities like pulses and food grains too came down, but vegetables still remained costly.