RBA's Bullock Says AI Data Centres Add to Australia's Inflation as ASX 200 Gains 0.2%
Updated
Updated · ABC News · Sep 22
RBA's Bullock Says AI Data Centres Add to Australia's Inflation as ASX 200 Gains 0.2%
3 articles · Updated · ABC News · Sep 22
Summary
Michele Bullock said the AI buildout is worsening Australia's inflation problem, with heavy spending on data centres adding to demand before any productivity gains lift supply.
Bullock said central banks still see few signs AI is boosting the supply side, creating an "awkward sequencing" in which excess demand rises first and keeps price pressures elevated.
She also warned an AI bubble is a risk being watched globally, saying a disorderly unwind could spill from financial markets into the real economy.
Her remarks reinforced expectations of another RBA rate increase next week, after July unemployment reached 4.5% and Bullock said that level may be needed to cool labour-market inflation pressure.
Australian shares still rose with the global AI rebound, with the ASX 200 up 0.2% after the Nasdaq climbed 2.3% to a record high.