Inflation nears zero even as food prices rise

Inflation fell further to 0.27 per cent during the second week of March even as prices of some essential commodities like cereals and vegetables rose during the period.

This will give room to the RBI to take further monetary steps to spur the economy.

Inflation was 0.44 per cent during the week ended March seven.

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

The food index in the category of manufactured items also rose because maida, sooji, oil cakes, imported edible oil, gur, and cottonseed oil became costlier.

Inflation is close to negative territory, something that was witnessed only in the mid-1970s.