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Need to tackle 'persistent' inflation says RBI Governor Raghuram Rajan

"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" said RBI Governor Raghuram Rajan.

Suvashree Dey Choudhury   Mumbai     Last Updated: September 25, 2014  | 12:00 IST
RBI Governor Raghuram Rajan
RBI Governor Raghuram Rajan (Photo: Reuters)

The Reserve Bank of India (RBI)Governor Raghuram Rajan said the country has 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," Rajan said in a speech in Mumbai.

"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", Rajan said further

Rajan has previously said inflation, driven by food inflation, is a structural problem that cannot be solved by monetary policy alone.

(Reuters)

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