Williams cites Middle East conflict and AI-related demand as second and third inflation drivers.
“The second is supply chain disruptions and higher energy and commodity prices owing to the conflict in the Middle East.”
Williams sees sharp price increases in semiconductors and power transformers from AI demand outpacing supply.
“As a result, we are seeing sharp increases in the prices of semiconductors, power transformers, and other technology that is essential for the AI buildout.”
Williams identifies tariffs, Middle East conflict, and AI-driven demand as the three drivers of elevated inflation.
“The first is the effect of higher tariffs on imported goods. The second is supply chain disruptions and higher energy and commodity prices owing to the conflict in the Middle East.”