FRANKFURT (Reuters) - The Reserve Bank of India Governor Duvvuri Subbarao said on Tuesday he was "very happy" about lower headline inflation, where new figures showed it decreased more than expected.
The headline wholesale inflation fell below 5 percent in April, dropping within the central bank's comfort zone for the first time in more than three years and fuelling market hopes for more monetary easing to revive flagging economic growth.
Referring to those figures, Subbarao said in a speech in Frankfurt he "very happy to learn that" inflation had fallen to below 5 percent, but added that retail inflation was still high.
He added that India has to control its current account deficit and bring it down to 2.5 percent from the current level of 5 percent.
(Reporting by Sakari Suoninen)
