RBI deputy says 'long way' to go before inflation eases

Says reasons for elevated food prices remain 'structural'

India's inflation has a "long way" to go before it eases because of high input costs, while the reasons for elevated food price inflation remain "structural," Reserve Bank of India Deputy Governor H R Khan said on Friday.

Khan, in a speech in Mumbai, also noted rural inflation was high because of supply chain issues.

Markets have been pricing in an early rate cut from the RBI after consumer prices-led inflation slowed to 6.46% in September, its lowest since the series was started in January 2012.

Khan also warned against too much complacency in markets, but he did not elaborate. Expectations for earlier-than-expected rate cuts, the stability in the rupee and hopes about Prime Minister Narendra Modi's reform drive have been among the reasons for a rally in domestic markets this year.