'RBI action needed to curb inflation'

HYDERABAD: Prime Minister's Economic Advisory Council chairman C Rangarajan today said inflation level has reached an uncomfortable level and some action from the RBI is needed to prevent it from rising further.

"Inflation rate has reached uncomfortable levels. Therefore, some action is called for. It is for the Reserve Bank to decide on the timing. But, some action is called for," Rangarajan told reporters on the sidelines of a function at the University of Hyderabad here today.

"I think fiscal deficit could be somewhat low than what was projected," he said when asked if there is any case for a lower fiscal deficit in the backdrop of the huge additional revenue collection from the recent 3G and broadband spectrum auctions.

Rangarajan was earlier honoured with an honorary doctorate by the University of Hyderabad.