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.
India's markets have been pricing in an early rate cut from the RBI after consumer prices-led inflation slowed to 6.46 per cent 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.