As the number of new confirmed cases of Newcastle pneumonia (CCP) in India has reached record highs in recent days, Deputy Governor for Monetary Policy Michael Patra, in “The State of the Economy” written with RBI researchers, revealed that the way forward includes pandemic-related actions, faster vaccination, increased hospital and ancillary capacity, and a firm A strong focus on strong and sustained economic growth, macroeconomics, and a post-pandemic future of financial stability.
India is currently a global hotspot for NCCV, with a total of more than 17.3 million cases and 300,000 additional cases per day. Provincial governments have restricted the movement of people, dampening economic activity and exacerbating price pressures due to supply chain disruptions.
Failure to contain the second wave of the deadly outbreak could disrupt India’s domestic supply chain and pose a potential inflationary risk, according to analysis. According to last month’s inflation data, higher commodity prices and higher input costs could affect retail prices, which have already begun to move toward the central bank’s 6% tolerance ceiling.
The RBI surveyed a number of businesses between January and March, showing that input price pressures may persist and selling prices will gradually rise through 2021-22.
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