Bloomberg Surveillance · Wednesday, August 12, 2026
Persistent inflation is being fueled by factors beyond typical supply shocks, including the ongoing war, tariffs, and the inflationary effects of the AI build-out. A former Fed official noted that the AI boom, with its demand for contractors and resources, is bidding up prices, and that the conflict in Iran is creating sustained energy market uncertainty.
“Yeah, I do. Because do you see an end to this war? I don't.”
“Tariffs are still working their way through the economy, and now we look like we're having a new round of taris, so those are also inflationary.”
“But we're just trying to know your previous speaker, your guest was talking about AI and the AI build out. You know that's clearly having some inflationary effect. We don't know exactly how much. But look, if they're buying lots of stuff, they're buying all kinds of things that are looking for contractors, plumbers, electricians. So that's bidding our prices.”