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Slow AI Buildout Could Be Inflationary: Natixis' Herrero

Bloomberg Markets
Monday, October 26, 2026 at 12:17 AM
~4 min read
Inflation

Original Report

Alicia Garcia Herrero, chief APAC economist at Natixis, tells Bloomberg TV that rapid AI adoption could be inflationary if data-center construction falls short of what is needed to meet demand for...

Alicia Garcia Herrero, chief APAC economist at Natixis, tells Bloomberg TV that rapid AI adoption could be inflationary if data-center construction falls short of what is needed to meet demand for compute. (Source: Bloomberg)

Glass House Analysis

Inflation is the silent tax that erodes purchasing power, hitting hardest those who can least afford it. When grocery bills rise faster than wages, families face impossible choices between food, medicine, and rent. Unlike market volatility that mainly affects investors, inflation touches everyone who buys groceries, fills a gas tank, or pays rent.

The implications extend beyond the immediate news cycle. Every economic development creates ripples that affect employment, prices, and opportunities in ways that may not be immediately visible but are deeply felt. By tracking these connections, we can better understand how the economy truly works—not as an abstract machine, but as a human system shaped by and shaping the lives of millions.

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Economic Context

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