Climateflation
Rising prices of pretty much everything as a result of climate change is what the meaning of that word above is. It is no secret by now that climate change is and will be even a more significant driver of inflation in all industries across the board. However, the one major area where climate change led global warming would cause major problems would be the rising prices of food. A research study was conducted by Postdam Institute for Climate Impact Research and European Central Bank, which looked at monthly food price indexes between 1996 and 2021. It involved 121 countries. The result was a shocking realisation that increases in food prices are most strongly associated with the climate.
In Europe, where heat records were broken in 2022, it was found that the heat caused food inflation to rise by between 0.43 and 0.93 percentage points. The research also confirmed that in the next decade, that inflation would be 3 percentage points.
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