It was at 5.43 per cent last month and 5.84 per cent in July 2013.
Inflation in the overall food articles basket, which account for 14 per cent of the total Wholesale Price Index (WPI), stood at 8.43 per cent. It was at 8.14 per cent in June.
Inflation in vegetables declined 1.27 per cent, and for onion it was (-)8.13 per cent on an annual basis in July, as per the WPI data released on Thursday.
However, potato prices shot up 46.41 per cent and fruits 31.71 per cent during the month. Rate of price rise in milk was at 10.46 per cent.
Inflation in the egg, meat and fish category stood at 2.71 per cent in July as against 10.27 per cent in the previous month.
While the rate of price rise in pulses was 3.31 per cent, it was at 4.46 per cent for cereals. In rice it was 6.85 per cent and wheat 1.02 per cent in July.
Inflation in the manufactured products was at 3.67 per cent, and non-food articles, which include fibre, oil seeds and minerals, at 3.32 per cent.
Inflation was at 5.43 per cent last month
Inflation in the fuel and power category, meanwhile, was down at 7.40 per cent from the previous month.
The WPI inflation data was revised upwards for May to 6.18 per cent, from 6.01 per cent as per provisional estimates.
The Reserve Bank in its monetary policy review last week had cautioned that continued uncertainty over monsoon could stoke food inflation, but expressed the hope that government policies will improve supplies in the coming months.
Retail inflation data for July, released earlier this week, showed a marginal inch up to 7.96 per cent.