Goldman Sachs: AI Could Add 20 bps a Year to US Core PCE Inflation, Rising to 50 bps by Year-End

Goldman Sachs said the U.S. is likely to be hit first and hardest by a global inflation wave driven by artificial intelligence, as AI-related demand pushes up prices for key components such as memory chips and semiconductors amid supply constraints, according to 36Kr. In a note, Goldman Sachs economist Megan Peters estimated that AI is adding about 20 basis points per year to U.S. core personal consumption expenditures (PCE) inflation, the Federal Reserve's preferred inflation gauge. Goldman Sachs expects the inflationary impact to more than double by the end of this year, lifting core PCE inflation by around 50 basis points.