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A signal we think deserves more attention: Producer price inflation (PPI) has remained firmer. Consumer price inflation (CPI) has been much softer. We believe that divergence suggests many companies may be struggling to pass higher input costs through to end consumers. Two implications, as we see it: First, inflationary pressures may be less entrenched at the consumer level than headline fears suggest. Second, margin compression in consumer-facing segments could create even stronger incentives for companies to adopt AI and other productivity-enhancing tools in order to protect profitability. In our view, this dynamic could become one of the most powerful accelerants for enterprise AI adoption. More in our latest In The Know: https://t.co/R6IfWsDfqK

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