The wholesale price index-based inflation rate of India, for the third straight week, remained in negative zone for the previous week - with inflation rate standing at -1.3 per cent, according to the data released by the government. The wholesale price index is a more precise method to study the price rise since its covers more products as compared to consumer price index, which is published every month.

Experts believe that inflation will soon come out of negative zone under the impact of recent hike in prices of petroleum products. Dharmakirti Joshi, an economist at Mumbai-based Crisil Ltd, said: "The fuel-price increase will reduce the negative spell." He expects a further cut in interest rates, and other measures, in order to stimulate demand in the system.

Inflation started declining in August 2008, following an unprecedented fall of $147.27 a barrel in crude oil prices in July 2008. However, food price rises still continue to be in the double-digit range, with no impact of the decline in inflation for common man.

Suresh Tendulkar, Chairman of the Prime Minister's Economic Advisory Council, had said in June: "The divergence between the wholesale-price index and consumer price changes has in recent times been rising and inadvertently contributing to the erosion of the credibility of the wholesale-price index in the minds of the general population."