The Unseen Driver of Inflation: How AI's Hardware Hunger is Outpacing Tariffs The Minneapolis Federal Reserve has revealed an unexpected contributor to core inflation: artificial intelligence's voracious appetite for computer hardware.
While tariffs continue to make headlines, the true driver of price hikes lies in the technology sector's insatiable demand for memory and processing power.
Core PCE inflation, which excludes food and energy prices, reached a 12 year high of 3. 3% year over year through July. Tariffs imposed by President Donald Trump account for 0. 2 to 0.