Algorithm Inflation: Bank of Japan Recognizes AI Boom as Macroeconomic Driver of Price Increases

Artificial intelligence has officially become a factor in classical macroeconomics. On August 3, 2026, the Bank of Japan (BOJ) published a report that directly linked astronomical global spending on AI infrastructure to the formation of a "sticky" inflationary effect in the world economy.

The regulator's logic is transparent: the massive demand from hyperscalers for semiconductors, electricity, and copper to build data centers drives up prices for raw materials and components across the entire supply chain. Simultaneously, the deployment of Agentic AI increases corporate profits through automation. The combination of massive capital demand (CAPEX) and rising margins prevents central banks from quickly cooling the economy through traditional key rate hikes. AI has ceased to be merely an "IT trend"—it is physically rewriting the supply and demand curves in the global market.

Source: Bank of Japan / Reuters