On the other hand, given that services industries are labor intensive, if automation of the services sector moves ahead globally -- through the use of means such as artificial intelligence (AI) -- and wages converge on a global level, this may turn out to have a disinflationary effect (Baldwin 2022). Fourth, the impact of demographics is uncertain.
It is true that the decline in labor supply due to a declining and aging population could become inflationary. On the other hand, longer life expectancies can motivate people to build up their precautionary savings and push up savings rates.