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Tech market sell-off deepens amid fears over US inflation and AI debt
(www.theguardian.com)
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this post was submitted on 15 Oct 2026
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Significant inflation leads to increased interest rates and this makes it more expensive to take on new debt.
Or, if a country has high inflation and does not increase interest rates, this can lead to money flowing out of the country.
Inflation can also affect consumer spending, and therefore, selling of future products. Whether the effect is positive or negative could depend on how much consumer spending is debt-financed.