The overall inflation in March eased to 6.89 percent on account of sharp decline in prices of onions, fruits and protein-based items, even as vegetables and pulses turned costlier.

Inflation, as measured by the Wholesale Price Index (WPI), was 6.95 per cent in February. In March last year, it was 9.68 percent.

As per the official data released on Monday, inflation in food items was 9.94 percent in March, as against 6.07 percent in February.

Onion prices declined by (-)24.23 percent in March. The rate of decline was (-)48.50 percent in February.

Besides, eggs, meat and fish prices rose 17.71 percent during the month, lower from 20 per cent in February.

Pulses turned expensive by 10.05 percent and vegetables by 30.57 per cent during March. In February, the rate of price rise in vegetables was 1.52 percent.

Milk became expensive by 15.29 percent, while rice and cereals turned costlier by 4.73 percent and 4.41 percent respectively. Prices of potato too rose by 11.60 per cent.

Food articles have 14.3 percent share in the WPI basket.

The manufactured goods showed moderation in inflation to 4.87 percent, from 5.75 percent. This may have a bearing on the annual monetary policy to be announced by the Reserve bank on Tuesday.

The inflation number for March remained marginally above the projections made by Finance Ministry, which had expected it to be around 6.5 percent.

The headline inflation number for January was revised upwards to 6.89 percent, up from the provisional estimate of 6.55 percent.