AI demand and energy costs drive global economic shifts

Economic indicators suggest rising inflationary pressures and market volatility driven by artificial intelligence and geopolitical tensions. In the United Kingdom, consumer price inflation is projected to rise to 2.9% in July, marking a rebound after four months. This upward trend is attributed to ‘chipflation’—where surging demand for AI-related memory semiconductors increases the cost of consumer electronics like laptops and gaming consoles—alongside rising energy costs linked to conflict in Iran.

In South Korea, the KOSPI has shown significant recovery, approaching the 7,000 level due to a rebound in semiconductor stocks. Investor sentiment has been bolstered by expectations of shareholder returns from major memory manufacturers such as Samsung Electronics and SK Hynix, as well as strong performance from AI infrastructure companies. While the market shows strength, analysts warn of potential volatility stemming from upcoming FOMC minutes and ongoing diplomatic negotiations between the United States and Iran.