Finance Minister P Chidambaram expressed happiness on Friday over the fall in inflation to a 16-month low, but said prices of essential food items should decline further.
"It is a cause for happiness. It is a cause for concern," Chidambaram said when about decline in inflation to 3.79 per cent for the week ended August 25.
"This shows good macro management. I have been saying whatever steps have been taken from time to time have yielded good dividends," he said.
Asked about the possible future trend on inflation, he said there was need for caution as international crude oil prices have reached 74 dollars per barrel.
"Since crude oil prices are at $74 per barrel... so the outlook is of caution," he