Retail inflation declined to an 18-month low of 2.19 per cent in December 2018 mainly on account of sliding prices of fruits, vegetables and fuel.
The inflation based on the Consumer Price Index (CPI) was 2.33 per cent in November and 5.21 per cent in December 2017.
The previous low inflation was 1.46 per cent in June 2017.
According to the data released by the Ministry of Statistics and Programme Implementation, food inflation remained in the negative zone at 2.51 per cent compared to (-) 2.61 per cent in the November.
The rate of price rise in vegetables, fruits and protein-rich eggs continued to decline.
However, there was a marginal increase in prices of meat, fish, and pulses.
Fuel and light inflation was 4.54 per cent in December, down from 7.39 per cent in November on back of reduction in prices of petrol and diesel.
Another data released earlier in the day showed that inflation based on wholesale prices fell to an eight-month low of 3.80 per cent in December, 2018, on softening prices of fuel and some food items.
The Wholesale Price Index-based inflation stood at 4.64 per cent in November 2018 and 3.58 per cent in December 2017.