Nov 12 – US October inflation data came in above expectations, indicating that price pressures on consumers remain broad and persistent. This has raised concerns among some Fed officials that more aggressive measures may be needed to curb inflation. Over the past three months, prices for computers and peripheral equipment rose 25% on an annualized basis; smartphone prices last month saw the largest increase on record, coinciding with the launch of Apple's new iPhone models. Growing data center demand has driven electricity demand higher, with electricity prices rising 0.9% in October—the largest increase in six months. Analysts at TD Securities and Morgan Stanley said the price increases are consistent with AI-related demand driving growth in demand for chips and other electronics. The boom in data centers and related infrastructure construction is also boosting overall economic growth, while Fed policymakers are working to ensure that strong demand does not further exacerbate inflation. Preston Caldwell, chief US economist at Morningstar, said in a note to clients that recent data increase the likelihood that the massive demand-side stimulus from the AI boom is reheating the US economy; if the trend persists through 2027, the Fed may need to raise rates multiple times.