On a month-on-month basis, prices decreased by 0.68 percent in December compared with November, the bureau said.
Average inflation for the July-December period stood at 3.88 percent, compared with the same period last year.
The steepest rise in year-on-year prices was seen in the prices of gram flour, pulse gram and besan. The steepest drop in year-on-year prices was in the price of onions, tomatoes and chicken.