The U.S. has the steepest inflation in the G7

July 15, 2026

AI Summary

5 min read

The U.S. leads the G7 in inflation, AI spending reshapes the economy, and farmers brace for another season of uncertainty

Inflation has cooled slightly—wholesale prices fell three-tenths of a percent in June—but the United States now has the highest inflation rate in the G7, stuck at 3.5 percent while Germany sits around 2.5 percent and Japan at 1.5 percent. The reason, according to economists interviewed on Marketplace, is partly self-inflicted and partly driven by an unexpected force: artificial intelligence.

Why American inflation is worse than peer economies

The tariff situation contributed, but that's largely played out. The bigger current driver is the massive wave of capital expenditure from tech companies chasing AI. Stephen Stanley, chief US economist at Santander, notes tariffs are "kinda done" and unlikely to rise much more. But Steven Juno, senior US economist at Bank of America, points to an estimated $800 billion in AI-driven capital spending this year alone. That spending has pushed up prices for components like RAM and GPUs, and the rising stock market has made wealthier Americans feel confident enough to keep spending, adding more pressure on prices.

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What you'll learn

1 (01:22) **Disinflation and U.S. Inflation in the G7** - Kai Ryssdal introduces the day's theme: disinflation, and notes that U.S. inflation (3.5%) is the highest among G7 nations.
2 (05:06) **The Fed's Beige Book and Narrative Data** - The latest Beige Book offers timely, anecdotal economic data, including a note on increased beer sales in Boston attributed to the World Cup.
3 (08:10) **The AI Boom: A Tale of Two Tech Sectors** - AI companies are spending billions on data centers, enriching chipmakers and infrastructure firms, but this is starving older technology companies of investment.
4 (11:23) **Farming in a Time of Geopolitical and Price Volatility** - As farmers prepare to plant fall crops, they face brutal conditions from high input costs, especially fertilizer.
5 (15:43) **Market Numbers** - A brief summary of the day's market close.
6 (19:03) **The Chaos of Student Loan Policy** - Borrowers face whiplash from years of changing rules, from the pandemic pause to the blocked SAVE plan.
7 (23:58) **The Lucrative World of Car Detailing** - Kai interviews Tiphanie Koon (Wall Street Journal) about young entrepreneurs making a living from mobile car detailing.

+ Full timestamped outline available in the app

Guests on this episode

Sabri Beneshore

Show Notes

Though the latest inflation reports show price growth cooled a bit in June, U.S. inflation remains higher than its peer nations, which include the U.K., Canada, France, and Japan. President Trump’s tariffs are partially to blame. But so is hefty capital expenditure by AI giants. Can anything counterbalance all that spending? After that: Kai explains the utility of Beige Book “soft” data, IBM posts mediocre earnings, farmers fret over fertilizer prices, and student borrowers weather five years of policy whiplash.

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