IMF outgoing chief economist Pierre-Olivier Gourinchas says AI raises prices
AI is not just changing tech, it is also making things more expensive, according to Pierre-Olivier Gourinchas, the IMF's outgoing chief economist.
He explained that as companies pour money into AI, stock prices and people's wealth go up, which means folks are spending more on things like travel and luxury goods.
At the same time, building all this new tech is pushing up prices for computer parts behind the scenes.
Apple and Microsoft raise prices
Big names like Apple and Microsoft have bumped up their prices lately, with Apple citing higher memory and storage costs and Microsoft introducing price increases for its Xbox gaming consoles.
Gourinchas also pointed out that global issues, like shaky energy supplies from conflicts in Iran and governments struggling with debt, are adding even more pressure.
As he wraps up at the IMF, he warned these challenges will really test how well leaders can keep economies steady in the years ahead.