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Inflation running higher than comfort - RBI chief Rajan

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Reuters KOLKATA, India
Last Updated : Dec 12 2013 | 7:52 PM IST

KOLKATA, India (Reuters) - Reserve Bank of India (RBI) Governor Raghuram Rajan on Thursday said the economy was weaker than the central bank would like, but added inflation was also higher than what it was comfortable with.

Rajan added the RBI would take all data into account, noting wholesale price inflation data due was due out on Monday, although he also said at one point during a media briefing that the RBI was "very uncomfortable" with the current level of inflation.

"We will analyse all data. Clearly growth is weaker than we would like, inflation is higher than we would like," Rajan told reporters at the conclusion of the RBI's board meeting in Kolkata.

"In a situation where you have high inflation and low growth you have to calibrate policy carefully," he added. "There are some trade-offs that we have to make," he said.

Rajan addressed reporters after data earlier showed sharply higher food prices drove India's annual consumer price inflation to a higher-than-expected 11.24 percent in November from 10.17 percent in October.

(Reporting by Suvashree Dey Choudhury and Sujoy Dhar; Editing by Sunil Nair)

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First Published: Dec 12 2013 | 6:39 PM IST

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