Page 7 - April ISQ 2021

APRIL 2021

6% 4.95%

Inflation Rate compared to previous year 4% 3.22% 2.92% 2.73% 1.52%
5%

3%

2%

0.77%
1%
0.5%
0.46%
0%
-0.06%
-1%
United Kingdom
India Russia China Brazil USA Germany France Japan

Source: Statisa, https://www.statista.com/statistics/256630/inflation-rate-in-selected-global-regions/
Source: Statisa, https://www.statista.com/statistics/256630/inflation-rate-in-selected-global-regions/

that global daily COVID-19 infection rates are now ahead by expense account. Demand for many of the services that com-
65% from February’s low and higher by the same margin over prise a big proportion of both household and business budgets
last spring’s peak. Until COVID-19 is finally vanquished, the is down, sharply down!
world over, there cannot be a lasting economic recovery. Until
COVID-19 is completely beaten, international commerce will This, for the most well-off, leaves savings higher and cash
continue to be impaired. yearning to be spent. So, demand for electronic equipment,
household durables and any other consumer items that
Amazon can deliver is soaring. Also soaring is demand for
bigger houses outside congested urban areas, where isolation
“ and work-from-home is more convivial.
Until COVID-19 is completely beaten,
international commerce will continue
to be impaired. ” KEY TAKEAWAYS:
• As a result of a slow emergence from lockdown,
financial markets have spent much of 2021
obsessing about building inflationary pressures.
It’s a point often made, but well worth reiterating. The activities
most severely impacted by containment policies aimed at • Europe’s economic recovery has been postponed
curbing the virus’ spread are mainly those in the service sector again.
and amongst lower income earners. This cohort have seen • Until COVID-19 is completely beaten, international
incomes hit hard by the enforced closure of businesses and are commerce will continue to be impaired.
effectively living on government hand-outs. In contrast,
wealthier people are actually saving money by not commuting
to work, not taking overseas holidays and not dining out.
People locked down cannot go to the gym, or the spa, to the
theatre or to visit a museum. Neither can they take a business
trip, stay in a hotel, attend a conference or otherwise run-up the

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