Central Banks Can’t Fix This: Why Global Inflation Is Becoming a Tech Problem

On By Smart Money TechIn Economic Insights

Global inflation is no longer just about interest rates and monetary policy.
A new force is reshaping the cost of living around the world—and central banks can’t control it.

The problem? Technology itself.

From AI-driven price manipulation to hyper-optimized supply chains and platform monopolies, today’s inflation is increasingly a product of the tech economy.

And while central bankers keep raising rates, they’re fighting a battle they may already have lost.

The New Inflation Drivers: Beyond Interest Rates

For decades, controlling inflation meant one thing: adjusting interest rates.
Raise rates, slow borrowing, cool demand—simple.

But today’s inflation is driven by far more complex forces:

  • AI and algorithmic pricing
  • Global e-commerce dynamics
  • Platform monopolies
  • Logistics tech disruptions
  • Supply chain automation

These forces are largely immune to central bank actions. Worse—they may even be amplified by current monetary policy.

AI-Powered Price Manipulation

Dynamic pricing used to be limited to airlines and hotels.
Now, AI-driven pricing engines are everywhere—from Amazon to grocery delivery apps.

These systems:

  • Constantly scan competitors’ prices
  • Monitor consumer behavior in real time
  • Adjust prices dozens (or hundreds) of times per day

Result: Subtle but relentless upward price pressure—especially on goods where consumers have little choice or price transparency.

And central banks? They can’t stop algorithmic pricing with interest rates.

Supply Chains, Automation, and Global Costs

The tech revolution in supply chains promised efficiency and lower prices.

But COVID-19 and geopolitical tensions revealed a darker reality:
Hyper-optimized supply chains are fragile—and expensive to fix.

Now:

  • Companies are reshoring or diversifying suppliers (higher costs)
  • Just-in-time inventory models are breaking down (more expensive storage)
  • Supply chain tech investments are passing costs to consumers

AI is also playing a role here—optimizing for corporate margins, not consumer prices.

E-Commerce and the Hidden Costs of “Free” Shipping

Online shopping feels cheap and convenient. But the real economics tell a different story:

Cost FactorImpact on Prices
Warehousing automationHigh upfront costs passed on to prices
Last-mile delivery techSignificant logistics costs
Packaging and returnsGrowing expenses, especially for free returns
Marketing and platform feesHigher costs for sellers, reflected in prices

“Free shipping” is never free.
Tech platforms bake these costs into product prices—and AI helps them optimize just how much they can charge without losing customers.

What Consumers Can Do in a Tech-Driven Inflation Era

Central banks can’t save us from this kind of inflation.
But as consumers, we can adapt. Here’s how:

1. Develop Price Awareness

  • Use tools like CamelCamelCamel for price history
  • Track prices across multiple platforms
  • Recognize algorithmic price patterns (they often spike before weekends or holidays)

2. Value Real World Experiences Over Digital Consumption

  • Many tech-driven inflation forces hit digital convenience purchases the hardest.
  • Shift some spending to local businesses and physical experiences.

3. Support Transparent Platforms

Favor businesses and platforms that practice transparent, fair pricing over those that rely on opaque dynamic pricing.

4. Advocate for Regulation

Push for:

  • Transparency in algorithmic pricing
  • Limits on exploitative AI-driven practices
  • Consumer rights in platform-dominated markets

Conclusion

Global inflation is no longer just a question of monetary policy.

It’s being reshaped by the very technologies we use every day—AI, e-commerce platforms, automated supply chains.

Central banks can’t fix this.
It’s up to policymakers, technologists, and consumers to demand a new framework—one that protects affordability in an increasingly automated, optimized world.

Until then, staying informed—and skeptical—may be our best defense.

References

  • BIS (Bank for International Settlements), AI and Pricing Power, 2024
  • McKinsey & Company, Supply Chain Technology Report, 2024
  • OECD, E-Commerce and Inflation Trends, 2025
  • Bloomberg, Algorithmic Pricing and Consumer Impact, 2025

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