The Line in the Inflation Report Nobody Expected
When the September inflation report came out on October 14, most headlines focused on the overall number: consumer prices up 3.7% over the past year. [1] But buried in the detailed tables were two lines that matter to almost every business:
- Computers, peripherals and smart home assistants: up 9.7% over the past year
- Computer software and accessories: up 28.4% over the past year
According to the Bureau of Labor Statistics, both are the largest 12-month increases on record for those categories. [1]
For most of the last two decades, technology got cheaper every year. Computer prices had been falling about 5.5% a year since 2007. [2] That trend just reversed.
Why Tech Is Getting More Expensive
The short answer is AI. The buildout of AI data centers has sharply raised demand for semiconductors, memory chips and electrical components, and those costs are flowing through to laptops, phones and other devices. [2][3] When data centers outbid everyone else for memory, the price of the laptop on your desk goes up.
Tariffs on imported electronics and components add to the pressure, and analysts have pointed to both forces in recent price data. [3][4]
A note on the data: these figures come from the Consumer Price Index, which tracks prices consumers pay. Business pricing and enterprise software contracts can move differently, but the direction is a useful signal for anyone planning tech purchases.
What This Means for Your Business
Your Next Refresh Cycle Will Cost More
If you replace laptops every three to four years, the next round may cost meaningfully more than the last. Budget for it now rather than finding out at renewal time.
Subscription Costs Are Creeping Up
Many software vendors are adding AI features and raising prices to match. Review your subscriptions: you may be paying for tools and seats you no longer use.
Waiting May Not Save You Money
Normally, waiting a year means getting more computer for the same price. If prices keep rising, delaying a necessary upgrade could mean paying more for the same hardware.
Six Ways to Manage Rising Tech Costs
1. Audit Before You Buy
List every device and subscription. Cancel unused seats, consolidate overlapping tools, and identify which machines actually need replacing.
2. Prioritize by Business Impact
Upgrade the people and systems where slow or outdated technology costs you the most: customer-facing staff, production systems, anything that creates bottlenecks.
3. Consider Quality Refurbished Equipment
Refurbished business-grade laptops and servers often come with warranties at a meaningful discount. Used equipment can still qualify for the Section 179 deduction, as long as it's new to your business. [5]
4. Use Equipment Financing or Leasing
Rather than paying for a full office refresh up front, spread the cost over the useful life of the equipment. Leasing also makes it easier to upgrade on a regular cycle.
5. Time It for the Tax Deduction
Computers, servers and off-the-shelf software generally qualify for Section 179. For 2026 the limit is $2.56 million, and equipment must be placed in service by December 31 to deduct it this year. [5][6] Financed equipment qualifies too.
6. Negotiate Multi-Year Software Contracts
If you rely on a tool long-term, ask about locking in today's price for two or three years. With prices rising this fast, vendors may be willing to trade a discount for commitment.
The Bottom Line
The era of technology automatically getting cheaper is on pause. Businesses that plan their tech spending, finance it wisely and take advantage of this year's tax rules will feel it far less than those caught off guard at renewal time.
DirectCredit can match you with lenders that finance computers, servers and other technology, so you can upgrade on your schedule instead of all at once.
Sources
- U.S. Bureau of Labor Statistics, Consumer Price Index – September 2026 (detailed tables, "Computers, peripherals, and smart home assistants" and "Computer software and accessories")
- Business Model Analyst, Laptops Are Getting Pricier. That's What an AI Shock Looks Like
- WPXI / Associated Press, Pricey gas and rising AI costs likely pushed inflation higher in September
- Bloomberg, US CPI Report September 2026: Live Updates
- Block Advisors, Section 179 Deduction Guide 2026
- Current Federal Tax Developments, Technical Revisions to Revenue Procedure 2025-32
