Inflation fell further to 0.27 percent during the second week of March even as prices of some essential commodities such as grain and vegetables rose during the period.

This will give RBI room to take further monetary measures to stimulate the economy.

Inflation was 0.44 percent during the week ended March 7.

The index for primary articles of food rose by 0.1 percent as fruit and vegetables, rice, some varieties of pulses, barley, Bajra, maize and turned expensive.

The index for food in the category of manufactured goods also climbed because Maida, the sooji, oil cakes, oil imported table, the gur and cotton seed oil became more expensive.

Inflation is close to negative territory, something that was witnessed only in the mid-70s.

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