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The European Central Bank’s Moulin believes that artificial intelligence could intensify inflation volatility

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Golden Finance reported on July 11 that Emmanuel Moulin, a member of the ECB’s Executive Board, said the impact of artificial intelligence on inflation is difficult to predict and could lead to greater price volatility. “Because artificial intelligence simultaneously affects variables on both the supply and demand sides, its overall impact on inflation is particularly hard to predict,” Moulin said in comments published by Investir. “In addition, its effects may show up not only in the inflation level, but also in the inflation volatility.” The French central bank governor said that due to increased capital expenditure, artificial intelligence may have an inflationary effect in the short term, but as productivity improves, it may later suppress inflation.
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