Reserve Bank of India Governor Raghuram Rajan said the country suffered from “persistent” inflation, adding India had to act, while also noting the need for more data across important economic indicators such as employment and producer prices.
“The real problem is that inflation is persistent,” Dr. Rajan said in a speech.
“We have been emphasising again and again, in order to break the back of inflation we have got to break this persistence. Once we do it we can be much more comfortable.”
Dr. Rajan has previously said inflation, driven by food inflation, is a structural problem that cannot be solved by monetary policy alone.