NEW DELHI - India's federal government is working with its central bank to take measures and control inflation, a top government source said on Thursday.

Inflationary pressure has not eased yet but should do as prices of crude oil and food items like edible oil fall, said the source, who did not want to be named.

India's retail inflation likely eased in July to 6.78% year-on-year, helped by a fall in prices of food and fuel, according to a Reuters poll of economists.

(Reporting by Manoj Kumar in New Delhi, writing by Shilpa Jamkhandikar)