Postgres failing to start with "LOG: could not translate host name "localhost", service "5432" to address: Name or service not known"

Issue

Postgres service fails to start showing error messages:

LOG:  starting PostgreSQL 12.11 on x86_64-redhat-linux-gnu, compiled by gcc (GCC) 4.8.5 20150623 (Red Hat 4.8.5-44), 64-bit
LOG:  could not translate host name "localhost", service "5432" to address: Name or service not known
WARNING:  could not create listen socket for "localhost"
systemd[1]: rh-postgresql12-postgresql.service: main process exited, code=exited, status=1/FAILURE