The rupee has depreciated "quite significantly" in the last one month and this has pushed up import costs, RBI Governor Duvvuri Subbarao said on Thursday.
He was speaking after the Reserve Bank of India's board meeting in Jaipur.
The rupee had fallen 5.9% in September.
The RBI, which has raised rates a dozen times since mid-March 2010, is set to review policy on October 25.
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