"At 7.45% inflation is certainly quite high," Subbarao told reporters on the sidelines of a function here, adding that "We're always on high alert, high alert about growth, about inflation certainly."
His comment comes amid hopes of the government and industry of early monetary easing and a rate cut by RBI on the back of falling inflation and negative industrial growth.
Factory output contracted by 0.40% in September, driven by a deeper contraction in capital goods sector. In the first quarter, GDP grew by 5.5%.
In the busy festival season credit policy announced on October 30, Subbarao had said he expected price pressures to ease only in the first part of 2013 and had indicated that any easing of interest rate would happen only in January.
The next mid-quarter review of monetary policy is slated for December 18.