The widely tracked point-to-point wholesale price index inflation fell from the previous week's level of 5.67 per cent and it was 4.60 per cent in the year ago period.
Reserve Bank of India had estimated 5-5.5 per cent for the current financial year.
The WPI fell by 0.1 per cent to 192 points due to drop in the index of mass consumption primary articles and heavy weighted manufactured products even as fuel prices remained unchanged. The index was 181.8 points in the year ago period.
Oil PSUs have not so far raised the prices of petroelum products, a move, which analysts fear, could spurt inflation.
However, world oil prices, which had closed below $50 a barrel in the previous week, rose to hover above $51 a barrel during the week in review, mainly due to expected tightness in future supplies.
Government revised upwards inflation to 5.40 per cent during the week ended March 12 as compared to the provisional estimate of 5.23 per cent.
The WPI stood corrected at 189.4 points during the second week of March against provisional level of 189.1 points.
The index of primary articles' group was down by 0.1 per cent to 188.4 points due to fall in the prices of food and non food articles and it was 186.1 points in the year-ago period.
Food articles' group index was down by 0.1 per cent to 190.2 points owing to one per cent fall each in the case of of barley, condiments and spices, maize, jowar and bajra.
However, prices rose for fish-marine (2 per cent) and masur, ragi, gram and urad (1 per cent each).
The index of non-food articles' group fell by 0.1 per cent to 179.2 points due to cheaper fodder (9 per cent), safflower (3 per cent), gingelly seed and raw silk (2 per cent each) and sunflower, raw tobacco and linseed (1 per cent each).
But prices rose for raw rubber (4 per cent) and raw jute and castor seed (1 per cent each).
Fuel, power, light and lubricants' group index continued to remain firm for the second consecutive week at 293.2 points and it was 264.5 points in the preivious year period.
The index of manufactured products' group declined by 0.1 per cent to 170.6 points due to lower prices for food items, chemicals and non-metallic minerals. The index was 161.9 points in the year-ago period.