Bloomberg: AI 'Chipflation' Adds 0.4pp to UK Headline Inflation, Bank of England on Alert

Bloomberg reports that a memory-chip crunch driven by AI data-center buildout is washing into UK consumer prices ahead of Wednesday's CPI print, expected to accelerate to 2.9% in July. Bloomberg Economics calculates the memory squeeze will add roughly 0.4 percentage point to headline inflation before it eases, with Apple laptops, tablets and Xbox consoles already carrying $100-$300 markups. The Bank of England has cited AI-linked chip and energy costs among the factors keeping it from further rate cuts.