Mumbai (PTI): RBI Governor Y V Reddy on Tuesday described the current inflation rate that touched 7.83 per cent as "totally unacceptable" as it affects the poor instantly, but expressed hope that it might start moderating following various steps taken by it and the government.

"High growth benefits the poor with a lag, while inflation adversely affects them instantly... Hence the current high-level of inflation is, especially in terms of impact on inflation expectations," Reddy said while delivering a lecture at the Institute of South Asian Studies, Singapore.

"As per indications, the currently elevated level of the wholesale price index may start moderating noticeably as monetary, fiscal, and administrative measures impact the economy, while other seasonal as well as global factors turn favorable," he said.

He said RBI's monetary policy aims at bringing price stability because of its impact on the poor "who have no hedge". The central bank's annual policy aims to bring headline inflation to around 5.5 per cent in the current fiscal with a preference for bringing it close to 5 per cent as soon as possible.

However, RBI's resolve, going forward, would be to bring down inflation rate to around three per cent in the medium term in line with India's broader integration into the global economy.

This objective is also consistence with India's goal of maintaining self-accelerating growth over the medium term, Reddy said.