Commenting on the artificial intelligence (AI) boom driving the price of high-end memory and storage chips, SMU Assistant Professor of Finance (Education) Aurobindo Ghosh said that as AI infrastructure and other capital expenditures drive up chip prices, the inflation rate for information and communication equipment may rise slightly in the second half of this year as the cost is passed on to consumers. However, he said that the price of information and communication equipment has a very low weight in the Consumer Price Index (CPI), so the price increases of mobile phones, computers, etc., have a limited impact on overall inflation.
