Inflation in manufactured items slipped in to the negative territory, reflecting poor offtake of goods.
Wholesale Price Index (WPI) based inflation has been in the negative zone since November 2014 mainly on account of cheaper food and fuel products.
It was at (-)2.06 per cent in February, (-)0.39 per cent in January, (-)0.50 per cent in December and (-)0.17 per cent in November. It was 6 per cent in March 2014.
Inflation in food articles category stood at 6.31 per cent, and for fuel and power, it was (-)12.56 per cent.
More From This Section
With the decline in both wholesale and retail inflation, industry chambers have renewed their demand for further rate cut by the RBI to give a boost to manufacturing sector.
"Going ahead, it will be imperative to support this buoyancy in factory output to assure a sustainable turn around in the industrial sector. We look forward to another round of downward revision in the repo rate in June 2015 or perhaps earlier," Ficci President Jyotsna Suri said.
Industrial output growth jumped to nine-month high of 5 per cent in February on better performance of manufacturing sector and higher offtake of consumer and capital goods.
The Reserve Bank, which has reduced repo rate by 0.5 per cent since January, refrained last week from further cut in its first bi-monthly monetary policy review in the current fiscal. The next review is due on June 2.