In the Margins

Smartphones, apps contributing to low inflation

June 21, 2017

By Reuters

Americans' love of their smartphones and apps may be contributing to the sluggish pace of inflation that is worrying Wall Street and the Federal Reserve, according to a top bond manager at BlackRock. Consumers are relying less and less on devices such as cameras, radios and televisions, and services such as taxis and stores, replacing them with programs in their iPhones and other high-end phones, according to Rick Rieder, BlackRock's chief investment officer of global fixed income. "Technological innovation is disrupting traditional business models of many industries, putting a lid on prices and influencing inflation in the economy overall," he said in an article published Wednesday. Read the original story from Reuters.