The inflation based on wholesale price index (WPI) eased to 1% in March from 2.26% in February on sharp fall in food prices in the country.
Food inflation in March fell to 4.91% from 7.79% in the previous month, data released by the Commerce and Industry Ministry on Wednesday showed.
The nationwide lockdown which started on March 25 would have had some impact on the data collection for the month.
Inflation in vegetables fell sharply to 11.90% in March from a high of 29.97% in the previous month.
However, inflation in onion continued to rule high at 112.31% during March.
Fuel and power basket witnessed deflation of 1.76%, while manufactured products witnessed inflation of 0.34%.
The government said, due to outbreak of coronavirus and national lockdown, the provisional figures of WPI for latest month are computed with low response rate.
The figures are likely to be revised in a significant manner during release of final month, it added.