Long way to go before inflation eases, says RBI Deputy Governor HR Khan

Inflation in the country has a "long way" to go before it eases because of high input costs, while the reasons for high food price inflation remain "structural," Reserve Bank of India (RBI) Deputy Governor HR Khan said on Friday.

The deputy governor, in a speech in the country's financial capital, also noted rural inflation was high because of supply chain issues. Khan also warned against too much complacency in markets, but the Deputy Governor did not elaborate.

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

Expectations for earlier-than-expected rate cuts, the stability in the rupee and hopes about Prime Minister Narendra Modi's reform push have been among the reasons for a rally in domestic equity market in 2014.

(Reuters)