BOJ says global AI demand could have sticky inflationary effect

TOKYO, Aug 3 : Global AI-related demand may exert lasting upward pressure on Japan's inflation, the Bank of Japan said on Monday, signalling its alarm over mounting inflation risks that could boost the case for a near-term interest rate hike.Artificial intelligence should boost productivity and put downward pressure on prices over the medium to long term, as workers and firms adapt to its use, the BOJ said."In the short term, however, the inflationary effects of an AI-driven investment boom are likely to outweigh productivity gains, as stronger investment lifts demand and generates upward pressure on prices," it said in a full version of its quarterly outlook report.Producer prices have risen across the world in part because of the oil price rise caused by the Middle East conflict and in p