US CPI: Was it hold the key to worsening prices?
According to Nigel Green, CEO of deVere Group, advances in technology could act as a critical buffer against rising prices, especially as Trump’s monetary policies take shape, as new data reveal that US inflation is still persistent and rising.
Latest figures out Wednesday show the US Consumer Price Index ( CPI ) increased by 3.0 % in January, higher than anticipated by most economists. Excluding volatile components such as food and energy, core inflation remains elevated at 3.3 % year-on-year.
” The latest statistics shows that US CPI has come in above objectives. This suggests that this year’s Fed may have even lower rates ‘ chances of cutting them. But, there could be a possible response”, says Nigel Green.
The quick evolution of technology may offer a balance, according to traditional designs that suggest that duty reductions and tariffs may fuel inflation.
The inclusion of AI, technology, and modern efficiencies across industries could lessen price pressures and help to stabilize the economy.
He continues,” Industry using technology can scale result without significantly increasing expenses, which may offset the effects of mercantilist trade measures.
” Generally, higher taxes have contributed to prices, but emerging online solutions are changing the landscape. Companies can now prevent obstacles that have previously caused price spikes by avoiding and preventing supply problems with predictive insights and AI-enhanced logistics.
While modern conversion may provide relief, some industries still face greater inflationary pressure. Service companies, such as medical, kindness, and financial, are labor-intensive and less adaptable to technology in the short term. With the US employment rate at 4.0 %, pressure on wage growth may keep prices high.
The deVere CEO and founder cautions that the real test is whether firms can deploy technology solutions quickly enough to stop prices from accelerating. ” If businesses hesitate, waiting for more precision on economic policy, expansionary risks may intensify, prompting more violent intervention from policymakers”.
The management wants to prevent runaway inflation while sustaining strong economic growth. The Federal Reserve is conscious of possible heat and is aware of previous instances when hostile monetary tightening was necessary to stop prices.
However, businesses must decide whether to undertake to innovation-led expansion then or get a wait-and-see strategy.
The deVere CEO emphasizes that industry-wide systems integration may change prices changes. AI and robotics have already had a significant effect on boosting productivity, but more widespread adoption will be required to have a positive impact.
” Supply-chain savings and AI-driven technology in production are now proving their price”, he states. The next step is to ensure that these technological advantages are applied to service-based industries that are currently experiencing a salary and inflation squeeze, according to the article.
Nigel Green points to financial services, logistics, and operational operations as primary areas where AI-powered technology could improve productivity, reduce costs, and help preserve consumer prices from rising more.
Buyers may also look to it companies and AI builders as key drivers of financial stability in the upcoming years, he adds. Although the potential for technology and AI-driven solutions to counter inflationary pressures is there, it is still to be seen whether adoption does occur quickly enough to make a difference in the near future.
” We will have to decide whether we experience an economic reversal or a continual struggle against frequent inflation,” according to the CEO.
According to the most recent data, “tech-driven production may be the most powerful tool to attenuate inflationary pressures,” but only if businesses act quickly and decisively, deVere CEO detractors.
The article US CPI: Was it hold the key to worsening prices? primary appeared on Accra Mail.
US CPI: Was it hold the key to worsening prices?
