Speaking to TV news channel, he said, "It is really possible."
He was responding to question when asked whether inflation could touch double digits by Mar 2010.
India's wholesale price index rose to 7.31 percent in Dec 2009, driven by higher food prices.
The WPI inflation was just 1.3 percent in Oct 2009 and soared to 4.78 percent in Nov, mainly driven by high food prices.
Food inflation had shot up to 19.17 percent in Dec 2009, but started moderating ever since to settle at 17.28 percent for the week ended Jan 2.
"The Reserve Bank of India, which will review monetary policy on Jan 29, may also raise its reverse repo and repo rates by 25 basis points," the Barclays Bank Plc said in a note.
"With the outlook for growth remaining robust and inflationary pressures rising, we expect the RBI to begin its rate-tightening cycle in the January credit policy review," economists Rahul Bajoria and Wai Ho Leong wrote.