Finance Minister Pranab Mukherjee said on Thursday there is no need for unnecessary panic on inflation.

Food inflation in the year to Jan. 1 stood at 16.91 percent, data on Thursday showed, easing marginally from 18.3 percent recorded in late December, which was the highest in more than a year.

High food inflation is a major headache for a government already battling multi-billion dollar corruption cases that have emboldened the opposition.