Even the prices of manufactured items, including iron and steel, textiles, chemicals and batteries, declined during the week ended February 28.

Wholesale prices-based inflation is now at a level seen in June 2002, by falling 0.6 percentage points from 3.03 per cent a week ago. It was 6.21 per cent during the corresponding week a year ago.

Terming the decline below 3 per cent on expected lines, economists expect inflation to reach zero in the next couple of months.

"This is on expected lines. It was during last February and March that inflation spiked. The prices of commodities, primarily oil and foodgrains, have moderated," said Chief Statistician of India Pronab Sen.

According to ICRIER Director Rajiv Kumar, "It is no surprise. In fact, we should now begin to start worrying about deflation. We could see zero inflation in 2-3 months."