Driven by higher prices of food items like pulses, cereals, milk, and fruit and vegetables, inflation rose marginally to minus 1.14 per cent against (-)1.61 per cent in the previous week.
The wholesale price index stood at 11.80 per cent during the corresponding week a year ago.
The index was 234.2 points for the week ended June 13 from 236.9 in the same week a year ago.
India possibly is the only major economy moving into a deflationary zone though the European region is near zero level due to recessionary pressures.
However, Reserve Bank Governor D Subbarao last week had said there is no threat of deflation as food and crude oil prices are still firm and India does not suffer from demand constraints.
This is the second week in a row when inflation has remained in negative territory.
Low inflation is prompting banks to cut interest rates. Yesterday the country's largest lender, State Bank of India, reduced the benchmark lending rate by half a percentage point, leading to cheaper home, car and corporate loans.
During the week, tea became expensive by 2 per cent and arhar by 1 per cent.
At the same time, fuel items like aviation turbine fuel surged by a whopping 12 per cent, light diesel oil by 10 per cent and furnace oil by 3 per cent.
