US Inflation Skyrockets to 3.8%! Iran Conflict and AI Hash Rate Boom Simultaneously Driving Global Prices

BlockBeats News, May 12th: In April, the US Consumer Price Index (CPI) rose by 3.8% year-on-year, hitting a nearly three-year high. Several economists have warned that this round of inflation is not just a result of the "energy crisis," but a systemic cost shock triggered by the Iran conflict and AI infrastructure expansion.

The data shows that US gasoline prices surged by 28.4% year-on-year, while fuel prices skyrocketed by 54.3%. At the same time, food prices saw a 0.7% increase from March to April, and electricity prices rose by 2.1% in a single month.

KPMG Chief Economist Diane Swonk stated that compared to the Russia-Ukraine conflict period, this shock is more dangerous because the issue has begun to spread throughout the supply chain. She pointed out that the diesel shortage is pushing up agricultural, logistics, and shipping costs, while AI data center construction is triggering new pressures on chip, helium, and power supplies. "This is no longer just an energy issue, but a supply chain crisis."

Reports indicate that AI infrastructure development is driving up memory chip demand and continuously increasing data center power loads, with some states and local governments expressing growing opposition to large-scale data center projects. Meanwhile, real incomes of US residents are beginning to be eroded by inflation. Analysts believe that the Federal Reserve is currently in a "no-win situation":

- If it continues to raise interest rates, it will further hit the already weakening job market;

- If it lowers rates or maintains loose monetary policy, it may lead to longer and more entrenched inflation.

Kevin Warsh, a frontrunner for the new Federal Reserve Chair, who is set to succeed Jerome Powell, is widely believed to face an exceptionally challenging policy environment.