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AI fuels fears of rising global inflation

IMF Managing Director Kristalina Georgieva pointed to growing energy demand and the threat to food security

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IMF Managing Director Kristalina Georgieva said the boom in artificial intelligence is increasing inflation risks by increasing energy demand and costs, leading to higher prices for resources and products amid the influence of El Niño.

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IMF Managing Director Kristalina Georgieva commented on inflation risks associated with the development of artificial intelligence and climate factors.

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The artificial intelligence (AI) boom is fueling inflation fears that have dogged policymakers from the United States to Europe and Asia. This was stated by the Managing Director of the International Monetary Fund (IMF) Kristalina Georgieva. The text of her speech was published on the organization’s website.

She explained that artificial intelligence increases the demand for energy, and therefore its cost. As a result, prices for fertilizers, food and key industrial resources are rising. At the same time, food security is under even greater threat due to El Niño. All this results in increased inflation and a slowdown in economic growth.

However, she clarified that although the shock due to rising energy prices was strong, it was contained due to improved energy efficiency, diversification of fuel sources, release of reserves, and supply chain flexibility.

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