Veteran IT reseller Chris Barber of Baltimore’s “Cheaper Than a Geek” says the AI boom has driven RAM prices from $100 to an $300 per stick in six months, a jump he calls “insane.” The surge reflects data‑center builders hoarding memory chips for generative‑AI models, leaving small businesses facing prohibitive upgrade costs and often opting for brand‑new machines.

Consumer‑price data shows headline inflation slipped back above 4% in May, the first breach since spring 2023, as oil spikes combine with tech‑driven pressures. Software and computer accessories rose a record 14.5% year‑over‑year, and Bloomberg Economics estimates the memory squeeze adds 0.4 percentage point to the CPI, with higher electricity bills from data‑centers compounding household strain.

Fed officials, including Governor Lisa Cook and St. Louis chief Alberto Musalem, have flagged the chip and power cost surge as a barrier to rapid rate cuts. While economists like Stephanie Roth argue the productivity gains from AI remain years away, the immediate effect is higher wages in construction and electrical trades supporting data‑center rollouts, keeping overall price pressures elevated. The labor surge also fuels regional hiring spikes.