Energy and AI Pressures to Sustain Inflation for Decades, IFM Warns

Global inflationary pressures linked to energy markets and the expansion of artificial intelligence infrastructure are expected to endure for decades, IFM has cautioned. The outlook underscores deep structural changes reshaping economies, with energy volatility and technological investment playing central roles. Recent price movements in Asia reflect heightened geopolitical sensitivity, particularly around the Strait of Hormuz. On March 17, 2026, oil prices climbed in Asian markets after a slight retreat the previous day, signaling continued investor focus on regional supply risks. The shift in pricing dynamics was visibly evident in Manila, where workers updated fuel price labels at a petrol station on the same date. This operational activity reflects real-time economic adjustments in response to global energy conditions. As AI systems become more pervasive across industries, the energy demands of data centers and computing infrastructure contribute to sustained upward pressure on electricity costs and broader inflation. IFM emphasizes that these trends are not temporary but represent long-term structural shifts.

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