ECB Governing Council Member Emmanuel Moulin: AI Impact On Inflation Hard To Predict

ECB Governing Council member Emmanuel Moulin said the impact of artificial intelligence on inflation is difficult to forecast and could increase price volatility, according to 36Kr. In a commentary published in Investir, Moulin said AI affects variables on both the supply and demand sides, making its overall inflation effect especially uncertain, and that the impact may show up not only in inflation levels but also in inflation volatility. The Banque de France governor added that AI could be inflationary in the short term due to higher capital expenditure, but may later curb inflation as productivity improves.