On Tuesday, the government’s latest inflation report is set to be released, which will reveal new information about how inflation is affecting the prices you pay.
The report is scheduled to be releasing at 8:30 a.m. Tuesday.
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Economist predict Tuesday’s report will show a small decrease in
inflation during the month of June, because oil prices went down last month amid the ceasefire in
Iran.
While inflation has likely cooled slightly, the renewed fighting with Iran could send prices climbing again. The spike in gas prices have also increased shipping costs for groceries and other goods.
The situation in the Middle East continues to change hour to hour amid renewed strikes. According to the Associated Press on Monday, the price for a barrel of Brent crude oil, the international standard, climbed 9.6% to $83.30 after the United States and Iran each said the Strait of Hormuz is under its control.
Gas prices have fallen nearly 20% from their peak in late May but have rebounded in the past week, likely in response to renewed fighting in the Middle East. Gas prices averaged $3.87 a gallon nationwide Monday, up 7 cents from a week earlier. They averaged $4.09 a month ago, according to AAA.
Duke economist Connell Fullenkamp said the increased demand for
data centers is also driving up prices for construction materials, technology and
more.
A recent study shows North Carolina already has more than 70 data
centers, and dozens more will be under construction.
“We’re starting to think that this
surge in investment is long lived and is seriously kind of going to push prices
up across the board,” Fullenkamp said. “It’s going to put upward pressure on prices into the
foreseeable future. At least over the rest of this year and well into next
year.”
Economists have said massive investments in the buildout of artificial intelligence infrastructure could also worsen inflation by pushing up prices for memory chips and other semiconductors, as well as electricity. As a result, companies like Apple, Microsoft, and Dell have announced price increases for laptops, tablets, and video game consoles.
“The
AI boom has created tremendous demand for memory chips and for processing units
and these things are main components of a computer’s cost. And this summer of
course we’ve seen major manufacturers like Apple announce big price increases
just because the prices of their component have gone up,” Fullenkamp said.