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New Delhi21 hours ago
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- Retail inflation reaches 5.5% in March, higher than in February
- Fast rise in food and oil prices
The second wave of corona continues in the country. If it is uncontrollable, then long-term restrictions on movement will remain in force. This will affect the supply chain. If this happens, inflationary pressure can increase. This has been said in an article in the April Bulletin of the Reserve Bank of India (RBI). This article has been prepared by the team headed by RBI Deputy Governor Michael Debabrata Patra. However, it states that these are the authors’ own views. It is not necessary that these should be considered the views of RBI.
Retail inflation reached 5.5% in March
Inflation in the country is measured through the Consumer Price Index (CPI). It is also called retail inflation rate. Inflation peaked at 5.5% in March from 5% in February. Inflation rose in March due to sharp rise in food and oil prices. The RBI has set a target to maintain the inflation rate in the band of 2-6%. The government has also set a target to keep inflation in the middle of this band for the next five years, ie, 31 March 2026.
Way forward for financial stability
The article states that for robust and sustainable development after an epidemic, the focus will be on adopting epidemic-related protocols, accelerating vaccination, increasing the number and capacity of hospitals. According to the article, macroeconomic and financial stability is the way forward.
Second wave more dangerous
According to the article, the second wave of Corona is significantly more dangerous than the first wave of last year. Mutant variants of the virus are making it more dangerous. The problems of the country are increasing due to timely non-availability of medical grade oxygen and Kovid related medicines. So far only 2% of the country’s population has received both vaccine doses. Many states like Maharashtra and Delhi have local lockdowns. This trend may increase the pressure on RBI’s fear of rising inflation.
Unrest in sanctions will increase rapidly
The article stated that infections are increasingly increasing in restrictions. Although restrictions are currently being imposed on a local and regional basis, this will increase the uncertainty of the economic outlook. The second wave of Corona infection has forced agencies to ban people’s movements. Due to this, activities related to high-connectivity hotels, airlines and travel industry are being affected again.
Many countries banned travel to India
Giving an example, the article says that Britain has recently included India in its travel ban list. That is, Britain has banned travel to India. This shows how much the domestic travel and tourism industry will be affected. Prior to Britain, many other countries have also stopped flights coming from India. These countries have stopped this due to increasing Kovid-19 infection.
Good news on the economic activity front
Despite rising rates of Kovid-19 infection, there has been good news on the economic activity front. Most sectors have seen growth in March, except for the more exposed sectors, and have reached pre-Kovid levels. The bulletin states that there have been two positive developments on the price front in the last month. The first is that the southwest monsoon is expected to be normal in 2021. Second, crude oil prices have come down from their peak of $ 70 a barrel. This has led to a decline in the petrol pump prices of petrol and diesel domestically.
2.48 lakh patients recovered in 24 hours
In the last 24 hours, 3.19 lakh new corona were found infected and 2,762 infected people died in the country. However, it is a matter of relief that a record 2.48 lakh patients were also cured. This figure is the highest ever for those who have overcome the infection. The active case, that is, the increase in the number of patients undergoing treatment, is also seen to have some restraint. The previous day saw an increase of just 67,660 in the active case. This is the lowest in the past 14 days. Earlier, on April 12, the number of patients being treated had increased by 63,065.
Corona epidemic figures in the country