Uptick in inflation driven by supply shocks, should ease over the year: RBI

The tapering of the second wave, coupled with an aggressive vaccination push, has brightened near-term prospects for the Indian economy, the central bank said in its monthly bulletin for July

India's central bank on Thursday said that a pick-up in inflation rate was purely driven by supply shocks and sector-specific demand-supply mismatches caused by the coronavirus pandemic.

The Reserve Bank of India (RBI), in its monthly bulletin for July, said these factors should ease over the year as supply side measures take effect.

Further, it said that the tapering of the second coronavirus wave, coupled with an aggressive vaccination push, has brightened near-term prospects for the Indian economy.

The RBI said there had been a rise in mobility indicators and attendance at workplaces, as well as jumps in advance