The wholesale price index (WPI)-based inflation rose in December at 0.73 per cent mainly due to a sharp rise in food prices.
The WPI inflation was in the negative zone from April to October and had turned positive in November at 0.26 per cent.
"Positive rate of inflation in December 2023 is primarily due to increase in prices of food articles, machinery & equipment, other manufacturing, other transport equipment and computer, electronics & optical products etc," the Commerce and Industry Ministry said in a statement on Monday.
Food inflation rose to 9.38 per cent in December from 8.18 per cent in November 2023.
Inflation in vegetables was 26.30 per cent, while in pulses it was 19.60 per cent in December. Retail or consumer price based inflation (CPI) print for December rose to a 4-month high of 5.69 per cent, as per data released last week.
The Reserve Bank in its bi-monthly monetary policy last month held interest rates steady and flagged risks of rising food inflation in November and December.