Imagine having a crystal ball that reveals how consumers and businesses *really* feel about prices. That's the promise of a new AI-powered approach to understanding price sentiment. Researchers are tapping into the power of large language models (LLMs) to analyze survey comments and construct refined price sentiment indices (PSIs). Instead of just looking at numbers, this innovative technique delves into the nuances of human language, uncovering hidden trends in the words people use to describe price changes. Traditional methods often rely on broad surveys and numerical data, but these can miss the subtle shifts in sentiment that drive economic decisions. By training LLMs on vast amounts of text data, researchers have built a system that can accurately classify comments as reflecting rising, stable, or falling prices – even distinguishing between goods and services, and between consumer and business perspectives. This granular approach allows for the creation of highly specialized PSIs, offering more precise insights than ever before. For example, a consumer-focused PSI might reveal growing anxiety about the rising cost of groceries, while a business-oriented PSI could show increasing confidence in the pricing of their services. These targeted indices have shown impressive correlations with existing economic measures like the Consumer Price Index (CPI), the Corporate Goods Price Index (CGPI), and the Services Producer Price Index (SPPI), often outperforming traditional methods. While the current research primarily focuses on Japanese economic data, the potential applications are global. Imagine applying this technology to analyze social media chatter, customer reviews, or even news articles – unlocking a wealth of real-time price sentiment data that could inform everything from monetary policy to individual investment decisions. This research isn't just about understanding price sentiment – it's about opening a new window into the complex interplay of human behavior and economic trends. As LLMs continue to evolve, this innovative approach promises even richer insights, offering a powerful tool for navigating the ever-changing economic landscape.