Mumbai: The annual rate of inflation in India fell below six per cent after more than two months and stood at 5.74 per cent during the week ended March 31, the last week of the financial year 2006-07, against 6.39 per cent a week ago.

The average inflation for the whole year stands at 5.18 per cent for 2006-07, within RBI's projection of 5-5.5 per cent. Inflation had averaged 4.46 per cent during 2005-06.

Wholesale prices-based inflation stood at 3.98 per cent during the corresponding week of 2006.

Inflation for the last week of 2006-07 softened despite increase in all major indices, except manufactured items, which remained unchanged. Although prices rose in major categories, the increase was not so steep as witnessed in the previous week.

While prices of pulses rose along with pork, ragi, bajra, milk, masur, gram, vegetables, raw rubber and soyabean; those of condiments, spices, fish marine, castor seed, copra, cotton and coconut oil declined.

The fall in inflation rate is despite rise in prices of major food products as well as some fuel and manufactured items, but might help ease pressure on RBI to tighten monetary policy.

However, the price data to be released next week would play a crucial role in RBI's annual monetary policy review slated for April 24.