New Delhi, Mar 26 : The rate of inflation for the week ended March 14 fell further to 0.27 percent, from 0.44 per cent a week earlier, government data showed on Thursday.

However, the prices of some essential commodities like cereals and vegetables have risen during the period.

The price for primary food articles like fruits and vegetables, rice, some varieties of pulses, barley, bajra, and maize rose by 0.1 percent.

The food index of manufactured items also went up as maida, sooji, oil cakes, imported edible oil, gur, and cottonseed oil became expensive.

Commerce Secretary GK Pillai had said last week that the dropping rate inflation does not show a weakening demand.

"Inflation below 1 per cent is not a deflation and the low levels are due to high base effect," he said.

The experts have predicted a further downfall of inflation to zero by the end of March, when the 2008/09 fiscal year ends.

Some analysts also expect negative readings by mid-2009. (ANI)