• Pace of global economic activity has differed, impacted by the surge in Covid-19 cases, vaccination progress and various stimulus measures across the globe
  
• Sharp rise in the United States (US) inflation figure in April 2021 gives rise to concerns of tapering of the quantitative easing policy implemented by the central bank
  
• Non-energy price index driven by steep rise in metal prices
  

The Covid-19 vaccines seem to hold the key to injecting growth into economies. Without a doubt, the first quarter (Q1) gross domestic product (GDP) numbers of major economies still reflect the lingering impact of the pandemic.

However, a recovery may be under way, powered by vaccines. The US recorded robust GDP growth in Q1 amid faster vaccination, controlled cases and the government’s fiscal support. GDP declined in the United Kingdom (UK) in January and February owing to lockdowns, but bounced back in March owing to faster vaccination. Similarly, in the US, domestic demand has been improving, underpinned by effective vaccination and fiscal stimulus. However, GDP declined in the euro area (EA) and Japan following a resurgence of cases. Private consumption remained weak in Japan with another set of national emergency measures as well as very slow pace of vaccination.