ING: UK Begins Feeling The Impact Of Chip Inflation

ING economist James Smith said in a report that UK inflation is starting to feel the impact of a global memory chip shortage driven by surging AI demand. According to Jin10, he said core inflation in June was slightly above expectations, portable device prices rose 22% month on month, the biggest increase since the data series began in 2015, and ING expects the Bank of England to keep rates unchanged throughout 2026 before considering gradual cuts from next spring.