[‘Daily News Updates’ will provide you with a simplified understanding of the important economic/financial events across the country]
When will Sputnik Vaccine be rolled out in the country?
The Sputnik-V vaccine had received Emergency-Use Approval (EUA) in India in April itself. Dr. Reddy’s Laboratory launched the vaccine in May, but only as a pilot project in selected centres across the country. However, a full commercial rollout has been delayed as the company has not received equivalent quantities of its two differing doses. [The first and the second dose in the case of Sputnik-V is different, unlike the presently used vaccines, Covaxin and Covishield]. “Dr. Reddy’s had received about 3 million first doses by June 1 and about 360,000 doses of the second by early this month.”
India’s Industrial Output Grows by 29.3% in May
As per the data released by the National Statistical Office (NSO), “India’s industrial production grew 29.3% in May.” While manufacturing increased by 34.5%, mining and power generation also rose at 23.3% and 7.5%, respectively. The industrial output (according to the Index of Industrial Production) had shrunk 33.4% in May 2020 due to the pandemic.
Rising Fuel Prices, Demand, and Inflation
As reported by The Print, an analysis of the official 20-year data between 1999-2000 to 2019-202 shows that the demand for fuel is not necessarily correlated with its price. “For instance, in September 2000, when petrol price rose by 19.5 percent — from Rs 23.8 in September 1999 to Rs 28.44 in September 2000 — its consumption increased by 22 percent.” One of the primary reasons behind this is that fuel is a price-inelastic good since it is an essential good with no close substitutes. [An inelastic good is a good whose quantity demanded doesn’t change as much as its price. Another example of such a good would be salt; even a steep increase in the price of salt will not affect its overall consumption much since it is an essential ingredient with no close substitutes].
However, fuel prices cannot be allowed to increase indiscriminately as fuel is an important input for various goods and services. An increase in fuel prices will thus cause an increase in the price of goods and services. The Consumer Price Index (CPI) had breached the 6% limit set by the RBI in May when it reached 6.30%. It only eased marginally to 6.26% in June.
[Also read- Inflation Demystified and Monetary Policy Committee- Explained].
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