Cathie Wood Says U.S. Inflation at 0.8% Could Turn Negative

Cathie Wood’s inflation predictions sparked major attention at Bitcoin Investor Week 2026 on February 13, as the ARK Invest CEO warned that U.S. inflation, currently at 0.8%, may soon enter negative inflation territory. Wood’s analysis points to AI deflation as the driving force behind this shift, with technology-driven innovation fundamentally reshaping the US economy. This Cathie Wood inflation forecast represents a critical turning point for investors and markets alike.

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How Cathie Wood Inflation Signals Point to AI Deflation Ahead

The data shows year-on-year increases in second-hand home prices have dropped to 0.9%, while new home prices are declining and gasoline prices are also falling. Wood pointed to Pepsi’s decision to reduce prices on chips and Doritos by 15% as a concrete indicator of this shift in market dynamics.

Wood stated:

“The market is on the ‘other side’ of a bubble, with robotics, AI, blockchain, energy storage, and multiomics entering a ‘golden era.”

The AI deflation trend is being driven by dramatic cost reductions. AI training costs are decreasing by 75% annually, while inference costs are dropping by 85% each year. Wood attributes this negative inflation pattern to what she calls “benign deflation” stemming from technology-driven innovation rather than economic weakness.

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Cathie Wood Inflation Analysis and Investment Outlook

Speaking at Bitcoin Investor Week, Wood explained that this US economy transformation could create favorable conditions for investors in the coming years. The combination of falling AI costs, increased automation, and blockchain maturation is reshaping traditional market assumptions about Cathie Wood inflation predictions and their impact on asset classes.

The timing at Bitcoin Investor Week 2026 is significant, as cryptocurrency investors have historically viewed digital assets as inflation hedges. A move toward negative inflation could fundamentally alter how investors view Bitcoin and other assets in their portfolios.

Wood further commented:

“She expects a prosperous period for U.S. investments in the coming years.”

At the time of writing, these AI deflation trends are already visible across multiple sectors. The shift from inflationary pressures to technology-driven price reductions marks a new phase for the US economy, and also signals that traditional economic models may need recalibration for this era of rapid technological advancement.

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