The inflation based on wholesale price index (WPI) eased to 1 percent in March from 2.26 percent in February on sharp fall in food prices in the country.
Food inflation in March fell to 4.91 percent from 7.79 percent in the previous month, data released by the Commerce and Industry Ministry on Wednesday showed.
The nationwide lockdown which started on 25 March would have had some impact on the data collection for the month.
Inflation in vegetables fell sharply to 11.90 percent in March from a high of 29.97 percent in the previous month.
However, inflation in onion continued to rule high at 112.31 percent during March.
Fuel and power basket witnessed deflation of 1.76 percent, while manufactured products witnessed an inflation of 0.34 percent.
The government said that due to outbreak of coronavirus and national lockdown, the provisional figures of WPI for latest month are computed with low response rate.
The figures are likely to be revised in a significant manner during release of final month, it added.
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