INSIGHT · US
Federal Reserve studies measurement of software and AI services inflation
Federal Reserve published research on how to measure inflation in 'Computer Software and Accessories' and related tech services. Analysis addresses difficulty in pricing AI services given rapid capability improvements and cost deflation.
WHY IT MATTERS
Fed grappling with AI's deflationary impact on pricing models. Implications for PCE, CPI calculations; potential shift in inflation expectations that could affect Fed policy rate paths.
Source: Federal Reserve · 2026-05-22