New Delhi, Mar 19 : The rate of inflation for the week ended March 7 fell to historic low of 0.44 per cent, from 2.43 per cent a week earlier, government data showed on Thursday.

Inflation, as measured by the wholesale price index is down by 0.4 per cent to 226.7, as compared to 227.7 a week earlier, mainly due to high base effect.

The annual inflation rate during the corresponding week of the previous year was 7.78 per cent

According to Commerce Secretary GK Pillai, 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.

This is the lowest inflation rate of inflation since annual numbers in the current index started in April 1995. The previous low was of 1.13 per cent on Feb 2, 2002.

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