AI productivity gains may not curb inflation, IMF's Tenreyro warns

IMF chief economist Silvana Tenreyro warns AI-driven productivity gains may not cut inflation and could even raise it.
Heavy upfront investment in AI can push demand before real efficiency arrives, causing supply crunches and price jumps — already visible in surging chip and memory prices.
The inflation effect depends on where gains occur: productivity in services tends to lower domestic inflation, while export-focused gains can lift wages and push up domestic prices.