Swiss National Bank: Artificial Intelligence May Increase Inflation

Artificial intelligence may increase inflation in the short term, but its long-term impact remains unclear. This was stated by Petra Chudin, a member of the governing board of the Swiss National Bank.

According to her, large-scale investments in artificial intelligence may create resource deficits in other sectors. For example, increased demand for chips could lead to their shortage and a corresponding rise in prices.

The picture may change in the long term. Artificial intelligence could increase productivity and enable companies to produce goods and services more cheaply, but according to Chudin's assessment, this in itself does not necessarily mean that inflation will decline.

According to the Swiss National Bank's forecast, annual inflation will be between 0% and 2% through the first quarter of 2029. The bank's main interest rate is currently 0%, although monetary policy may change based on new economic data.

Source: Investing.com