Goldman Sachs Warns AI Demand Could Double U.S. Inflation Pressure to 0.5% by End of 2026

According to Goldman Sachs' latest research, AI-driven demand is fueling global inflation, with the United States facing the most severe pressure. The bank estimates AI-related demand currently pushes up the Fed's preferred inflation gauge—core Personal Consumption Expenditures (PCE)—by 0.2 percentage points annually. Memory chip and semiconductor price spikes, driven by supply constraints, are cited as key drivers.

Goldman Sachs economist Megan Peters noted the inflation impact could double by end-2026 to 0.5 percentage points as hardware demand continues surging and supply chains remain tight. The U.S. faces outsized risk due to concentrated AI infrastructure investments and higher electronics consumption weighting, making it the hardest-hit economy in this "AI inflation" cycle.