European Central Bank's Moulin believes artificial intelligence may exacerbate inflation fluctuations

On July 11, European Central Bank Governing Council Emmanuel Moulin said that the impact of artificial intelligence on inflation is difficult to predict and may lead to increased price fluctuations. "Because artificial intelligence acts on both supply and demand variables, the overall impact on inflation is particularly difficult to predict," Moulin said in comments published in Investir. "In addition, the impact may be reflected not only in inflation levels, but also in fluctuations in inflation." The governor of the French central bank said that artificial intelligence may have inflationary effects in the short term due to increased capital expenditures, but as productivity improves, it may curb inflation in the future.