Inflation closes in on sub-zero level

India's benchmark inflation, as measured by the wholesale price index (WPI), declined further in the second week of March on the back of the high base effect and economic slowdown, data released by the Government showed. The annual, point-to-point inflation fell to 0.27% in the week ended March 14 from 0.44% in the previous week, the Commerce & Industry Ministry said. Inflation was forecast to slip to 0.1-0.15%. This is the lowest inflation rate since annual records started in 1977-78 and comes seven-and-half-months after the current inflation series hit a life high of 12.91% in early August. Inflation has tumbled over the past few months due to a sharp fall in global commodity prices and partly due to a steep rise in the WPI in the corresponding period a year earlier. Inflation was at 8.02% during the week ended March 15, 2008.