The ECB's Moulin thinks artificial intelligence can increase inflation volatility

On 11 July, Emmanuel Moulin, the ECB Governing Board, stated that the impact of artificial intelligence on inflation was difficult to predict and could lead to increased price volatility. “The overall impact on inflation is particularly difficult to predict because artificial intelligence works with both supply and demand variables.” Molulin stated in a comment published in Investir. “In addition, its impact may be reflected not only in inflation levels but also in inflation fluctuations.” The Governor of the Central Bank of France said that artificial intelligence could have an inflationary effect in the short term because of increased capital spending, but that, as productivity increases, inflation could be curbed in the future。