Prices for computer software and accessories jumped a record amount over the past year, according to data from the Bureau of Labor Statistics, as artificial intelligence tools seep into more everyday products.
Inflation data released Tuesday showed overall price increases eased a bit as gas prices fell in June, though that could be a short-lived reprieve. Computer software and accessory prices for consumers, however, spiked more than 17 percent in the past year, the largest increase since records began in 1997.
Software used by millions of households, small businesses and nonprofits, including products from Adobe and Intuit, has been getting more AI features, which often come with higher price tags.
Despite the large price hike over the past 12 months, computer software and accessories make up only a small part of the government’s inflation calculations. And other technology categories did not show the same increase — information technology commodity prices fell, as did prices for smartphones and some other devices.
But further hardware price increases are probably coming. Apple raised prices on several of its most popular computers last month, sometimes by hundreds of dollars. It didn’t increase the price of the iPhone, but analysts expect that the new model coming this fall will cost $100 to $200 more.
Apple blamed the price increases on the rising cost of memory chips, which is driven by the massive expansion of AI.
“We have never seen a component price increase this much, this quickly,” Apple said in a statement last month. “We know this is not welcome news, and we are working tirelessly to find solutions.”
Some analysts and companies are hopeful that the AI-induced inflation is temporary. If the technology eventually creates big gains in productivity, it could lessen inflation.
But that might be years away. When transformative technology is introduced, it’s common to have economic pains and waves in the near term, said George Mateyo, chief investment officer at Key Private Bank. AI will hopefully lead to long-term benefits, he said.
“It is the economy now, for good or for bad,” he said.
Miriam Waldvogel and Shira Ovide contributed to this report.