The data showed a slowdown in consumer price increases, which Trump interpreted as a sign of easing inflation. Detailed numbers weren’t specified in the comment, so it's more about perceptions than a full economic report
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We will see with the CPI numbers.
One thing working in this favor is the decline in GDP just announced by the US Government.
CPI numbers could provide a full picture—data inconsistencies sometimes lead to mixed impressions. Also, a decline in GDP adds another layer. It’ll be interesting to see how these pieces fit into the broader economic puzzle
A decline in GDP could, in part, be driven by technology. That is inherently deflationary.
Tech certainly can drive deflation by lowering costs and boosting productivity. Yet, GDP reflects a mix of factors beyond technology, which means its decline might stem from multiple forces working together without a single explanation.
That is true. There are more than one force at play. However, technology can underlie many sectors, causing deflationary forces within an entire industry.
It is similar to energy, how that drives many costs down or up.
Absolutely, technology often exerts a broad influence, reshaping cost structures across sectors much like energy does, which can contribute to broader deflationary pressures without being the sole factor driving GDP trends
My view is that as the percentage of the economy which is software related, the faster the deflationary forces will show up.
AI is a massive component in this.