Digital tech unlikely to make goods cheaper

A European Central Bank survey suggests the digital technologies sweeping through the corporate world mean some loss of jobs at big companies while bringing stronger sales and productivity.

But a key question for policymakers — what the digital revolution means for inflation — was harder to answer. Retailers told them e-commerce should lower prices to consumers, while goods producers foresaw more chance to raise prices thanks to new technologies such as 3D printing and internet-connected devices.

The ECB surveyed 74 of the biggest global companies in Europe about the impact in the coming years from digitalisation to find out how the new technologies were affecting the economy.

On balance, companies saw digitalisation having a ‘small negative impact’ on jobs, while shifting labour needs from low-skilled to high-skill employees, reports AP.