AI Spending, Tariffs, Energy Seen Among U.S. Inflation Drivers -- Market Talk

0559 GMT - When thinking about the factors that drive inflation these days, it mostly boils down to AI spending, tariffs and energy, the Schwab Center for Financial Research's Kevin Gordon says. "The goods sector is where the latter two forces show up most, and here you can see how much the dynamic has changed over the past couple years," the head of macro research says after Wednesday's U.S. PCE data. In a posttariff world, it has been rare to see goods deflation--especially in the durable sector, which has historically mostly been in deflation territory, he says. "On the services side, it's normal to see inflation in any expansion; for now, it's the 'good' kind given the resilience in the sector and how much that is helping aid GDP growth." (emese.bartha@wsj.com)

(END) Dow Jones Newswires

August 27, 2026 01:59 ET (05:59 GMT)