Inflation falls below 1 pc for week ended March 7

Inflation drastically fell to a two-decade low of 0.44 per cent in the first week of March as food and fuel items turned cheaper, prompting analysts to say that rate of price rise would soon turn negative.

Wholesale price-based inflation declined by 1.99 percentage points from 2.43 per cent during the week ended February 28, fuelling expectations that RBI would cut interest rates to spur the economic growth.

Drastic fall in inflation is also attributed to high base effect as it stood at 7.78 per cent during the corresponding week last year.

Among food products, gram turned cheaper by five per cent, tea and fruits and vegetables by three per cent each. However, prices of moong and sea fish moved up by two per cent each.

In fuel, power light and lubricants category, prices of jet fuel and electricity for agriculture fell by eight per cent each, light diesel oil by seven per cent. However, naphtha and furnace oil and electricity for domestic consumption turned expensive.