Goldman Sachs: Artificial intelligence pushes U.S. core inflation 0.50percentage points higher
Goldman Sachs estimated that U.S. core inflation will rise by 0.50percentage points by the end of this year on AI demand. The report identified higher memory and software prices as the main channels, and said the impact in the United States is 5times larger than in other countries.
Goldman Sachs estimated that AI demand will lift U.S. core inflation by 0.50percentage points by the end of this year. That means investors need to watch changes in inflation indicators closely.
The report said the impact of the same factors on other countries will be 5times smaller than in the United States. It emphasized that the gap in country-by-country effects is wide.
Goldman Sachs cited memory prices and software prices as the main transmission channels for the rise in inflation. It explained that higher prices for the two items feed into core inflation pressure.
The report presented an analysis that AI demand is rapidly pushing up demand for memory chips and related software, driving prices higher. Specifically, it relied on price trends in the memory and software sectors.
The report forecast that this effect could accumulate through the end of the year. The timing is through the end of this year.
Goldman Sachs' estimate stated that it is a forecast based on AI-related demand and price trends. The estimate was built on several assumptions.
Sources: Business Insider
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