The wholesale price index, or WPI, rose 0.83 percent year-over-year in December, reversing a 0.32 percent fall in November. The expected increase was 0.3 percent. Further, this was the fastest increase in eight months.

The annual price growth in manufactured products accelerated to 1.82 percent from 1.33 percent.

Food prices remained flat in December after falling 2.6 percent in November, while costs for primary articles showed a renewed increase of 0.21 percent. Data showed that the price decline in fuel and power deepened to 2.31 percent from 2.27 percent.

On a monthly basis, wholesale prices rose 0.71 percent from November, when they increased by 0.52 percent.

Data released earlier this week showed that India's consumer price inflation accelerated in December to the highest level in three months. Moreover, the inflation is still below the Reserve Bank of India's tolerance band of 2-6 percent.

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