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Inflation In India Has A Long Way To Go: RBI Deputy Governor

BI India BureauNov 10, 2014, 10:42 IST

Reserve Bank of India Deputy Governor H.R. Khan said on Friday that 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."

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

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

He also warned against too much complacency in markets, but didn’t elaborate. The reasons for a rally in domestic markets this year is mainly due to expectations for earlier-than-expected rate cuts, the stability in the rupee and hopes about Prime Minister Narendra Modi's reform drive in the country.