# RBA's AI boom warning on inflation

> RBA's Sarah Hunter warns AI spending is pushing up Australian inflation.
- Title: RBA's AI boom warning on inflation · Startup Fortune
- Summary: RBA's Sarah Hunter warns AI spending is pushing up Australian inflation. RBA's Assistant Governor Sarah Hunter says AI investment is causing short-term…
- Keywords: rba, ai boom, australian inflation, sarah hunter, data centres, cash rate 4.85%, central bank, inflation pressure, Startup Fortune
- Source: Startup Fortune — https://startupfortune.com/rbas-sarah-hunter-says-the-ai-boom-is-pushing-up-australian-inflation
- Published: 2026-11-09T04:01:12+00:00
- Read time: 1 min
- Topics: rba, ai boom, australian inflation, sarah hunter, data centres, cash rate 4.85%, central bank, inflation pressure, startups, business
## RBA's AI inflation warning
RBA's Assistant Governor Sarah Hunter says AI investment is causing short-term inflation pressure in Australia.

> In the near term, the positive shock to aggregate demand set against the economy's current supply capacity will put some upward pressure on inflation
## RBA rate hikes
RBA has raised cash rates five times this year to 4.85%, an 18-year high.
## Data centre investment surge
Data centre investment growth is a key reason for RBA's rate hikes.
## Construction sector strain
Data centres are straining construction with rapid expansion in Australia.

> data centres were coming through very, very rapidly
## Energy cost risks
Data centre energy use could triple by 2030, raising power costs by 26%.
## AI supply chain impacts
AI supply chain has pushed up input prices for software and commodities.
## Short-term inflation pressure
RBA expects inflation pressure to ease as data centre capacity expands.
## Market risks
AI investment disappointments could cause sharp market repricing and debt adjustments.
## Key takeaway

RBA's Assistant Governor Sarah Hunter says AI investment is causing short-term inflation pressure in Australia.