On October 14, the U.S. Consumer Price Index (CPI) for September exceeded market expectations, raising inflation concerns. Austan Goolsbee, President of the Chicago Federal Reserve, warned that not only rising oil prices but also the boom in artificial intelligence (AI) data center investments could contribute to upward price pressures.
In an interview with Yahoo Finance, Goolsbee described the September CPI as "disappointing," adding that "last month's figures were also disappointing."
The September CPI rose 3.7% compared to the same month last year, surpassing market expectations of a 3.6% increase and the previous month's 3.4% rise. This marks the highest increase in four months. The core CPI, which excludes volatile food and energy prices, also rose 2.6% year-over-year, exceeding expectations of 2.5% and the previous month's 2.4%.
Market analysts are focusing on the potential for inflationary pressures from rising international oil prices to spread beyond the energy sector. Goolsbee noted that both the overall CPI and service prices show little sign of slowing, indicating that factors like tariffs and rising oil prices alone cannot explain the situation.
He highlighted the construction boom of AI data centers as a factor that warrants close attention. The demand for electrical engineers, construction materials, and land for data centers could lead to competition with other industries, driving up costs and contributing to overall economic overheating.
Goolsbee emphasized that while the U.S. economy maintains solid growth and stable employment, inflationary pressures persist. He believes that inflationary pressures are increasing not only from the supply side but also from the demand side. He stated, "If demand-side overheating accumulates, that state can last a very long time and be difficult to resolve, so we must prevent overheating from building up."
However, he adopted a cautious stance regarding further interest rate hikes. Goolsbee said, "More data is needed," but he made it clear that a core inflation rate of 4% is unacceptable, explaining that this figure represents what is expected if inflation continues at the current pace for a year.
Meanwhile, Goolsbee will not have a vote on interest rate decisions at this year's Federal Open Market Committee (FOMC) meetings but is expected to participate with voting rights next year.
* This article has been translated by AI.
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