Dikhyaa Mohanty 
The Reserve Bank of India (RBI) stated that there will be substantial slack in it. The RBI Bulletin for July 2021 noted that the economy is struggling to regain the momentum of recovery that had started in the second half of 2020-21 but was interrupted by the second wave of Covid.
According to the reports, the RBI official stated that even with a 9.5 per cent GDP growth in 2021-22, there will be substantial slack in the economy and demand pressures may take some more time to become evident.
The report further added that due to the Covid-19 pandemic the pick-up in inflation is driven largely by adverse supply shocks due to disruptions which include increases in margins and taxes. It also added that there are also specific demand-supply mismatches as in the case of protein-rich food items, edible oils and pulses, which are being addressed by specific supply-side measures.
The RBI Bulletin further added that elevated international commodity prices, especially of crude, are also imparting cost-push pressures. These factors should ease over the year as supply-side measures take effect.
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