Due to falling prices of food items, especially vegetables and pulses, Inflation based on wholesale prices dropped marginally to 2.47 per cent in March.

On the basis of Wholesale Price Index (WPI), inflation was 2.48 per cent in February and 5.11 per cent in March last year, media reports said.

According to the latest government data, food articles witnessed deflation after about eight months as vegetables, cereals, pulses, eggs, meat and fish, turned cheaper.

Wholesale prices of food articles fell 0.29 per cent in March compared to a 0.88 per cent rise in the previous month, reported PTI.

Deflation in pulses was 20.58 per cent, in vegetables (2.70 per cent), wheat (1.19 per cent) and egg, meat and fish (0.82 per cent) in March, the report said.

Inflation in onion continued to rule high at 42.22 per cent and in potato at 43.25 per cent. Manufactured products inflation was at 3.03 per cent even as sugar prices fell 10.48 per cent during the month, it was pointed out.

However, rising crude oil prices pushed up inflation in the fuel and power basket to 4.70 per cent in March from 3.81 per cent in the previous month.

According to data released last week, retail inflation slipped to a five-month low of 4.28 per cent in March on account of decline in food prices. The RBI takes into account retail inflation while deciding on monetary policy.

In its first monetary policy review for 2018-19, the Reserve Bank earlier this month maintained status quo on interest rate citing inflationary concerns, the report highlighted.