The reading also came in well above market expectations of 0.30 per cent, indicating a faster-than-anticipated easing of deflationary pressures in the wholesale segment.
The rebound was largely driven by base effects and a pickup in food and global commodity prices, which lifted prices across primary articles and manufactured goods.
Food inflation saw a noticeable uptick, reflecting higher prices of vegetables, pulses and cereals, while fuel and power prices remained volatile amid global energy fluctuations. Manufactured product inflation also firmed up, suggesting that input cost pressures are beginning to build across industrial supply chains.
Economists said the return of WPI inflation to positive territory points to improving pricing power for producers, after months of deflation had squeezed margins, particularly in metals, chemicals, and basic manufacturing.
The December print strengthens expectations that wholesale deflation has likely bottomed out, even as consumer price inflation remains the primary policy focus for the Reserve Bank of India.
