RBA official: AI investment boom will lift inflation before productivity gains arrive
rohanpaul_ai · x · 2026-11-10
Reserve Bank of Australia Assistant Governor Sarah Hunter says surging AI investment will push inflation up before productivity gains materialize.
- Data centre construction is adding demand for already-stretched skilled trades, with higher building costs feeding into the CPI; pricier phones and game consoles add a smaller push.
- AI has barely affected headcount, but job ads and employment are weakening in AI-exposed occupations, especially for younger workers.
- She warned equities and corporate debt could reprice sharply if AI returns disappoint, as investors currently demand little compensation for risk.
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