Related solution
Investment management
Turning our investment legacy into
long-term growth for your portfolio.
Consumer and commercial banking products and services are offered through CIBC Bank USA. Member FDIC and Equal Housing Lender. All loans are subject to credit approval. Trust services and investment products are offered by CIBC Private Wealth Management. CIBC Private Wealth Management includes CIBC National Trust Company, CIBC Delaware Trust Company and CIBC Private Wealth Advisors, Inc. (a registered investment adviser) all of which are wholly owned subsidiaries of CIBC Private Wealth Group, LLC — and the private banking division of CIBC Bank USA. Trust services and investment products are not FDIC insured, not deposits or obligations of, or guaranteed by, CIBC Bank USA or CIBC National Trust Company, and are subject to investment risk, including loss of principal.
Commercial real estate products and services offered by CIBC Bank USA and CIBC Inc.
CIBC Capital Markets is a trademark brand name under which CIBC and some of its subsidiaries, including CIBC World Markets Inc., CIBC World Markets Corp. and CIBC Bank USA, provide different products and services. Capital Markets products are not FDIC insured; not deposits or obligations of, or guaranteed by, CIBC Bank USA; and are subject to investment risk, including loss of principal.
This website is not intended for use by residents of the European Union (EU).
The CIBC Logo is a registered trademark of CIBC, used under license.
©2026 CIBC Bank USA.
In some high-profile categories, yes, but it is not the primary driver
Percent price change, year-over-year
Source: Bloomberg, Bureau of Labor Statistics, as of June 30, 2026.
Many economists—including Fed Chair Kevin Warsh—are optimistic that AI adoption will enhance productivity and lower inflation over time. In the near term, however, concerns about perceived AI-driven inflation are becoming a potent political issue in a midterm election year dominated by cost-of-living concerns.
The rapid AI infrastructure buildout has driven soaring demand for semiconductors and increased computing costs. As the chart above shows, semiconductor and software prices have posted double-digit increases over the past year. Last month, Apple announced 20% price increases for laptops and tablets, citing rising costs.
While these trends have added to price pressures, it would be a mistake to view AI as the main driver of this year’s increase in overall inflation. The primary culprit has been higher energy costs related to the Middle East conflict. There was some encouraging news on inflation last week, as both the June PPI and CPI reports declined from the prior month.
Wednesday: Bellwethers Alphabet and Tesla report second quarter earnings.
Thursday: The European Central Bank (ECB) announces its interest rate decision. Following a rate hike last month, the ECB is expected to stand pat.
Friday: New home sales data for June will be reported. Housing trends have been soft for several months.
