Future food price increase and overall inflation across the world has been linked to global warming and heatwave according to scientists and the European Central Bank.
The report which was published by the Communications Earth and Environmental journal drew data from 121 countries over the period of 1996 to 2021. It predicted that by 2035, food prices could soar by 1.49 to 1.79 percentage points annually due to climate change. Overall inflation isn’t far behind, with an estimated increase of 0.76 to 0.91 percentage points, depending on future warming scenarios.
“We find this strong evidence that higher temperatures, particularly in the summer, or in places that are hot, cause price increases mainly in food inflation but also in overall inflation,” stated Maximilian Kotz from the Potsdam Institute for Climate Impact Research (PIK).
Kotz noted the disproportionate impact on already hot regions, particularly in poorer and developing areas. “Regions that are already hotter will feel the sting of rising food prices and inflation most acutely,” he explained.
The continents of Africa and South America were identified as the most vulnerable to these changes. However, Kotz warned that the northern hemisphere will also experience the pinch of higher prices during the summer months.
The study’s findings are consistent with other research, highlighting the sensitivity of agriculture to climate shocks. Notably, it pointed out that the major heatwave in Europe during the summer of 2022 likely pushed food inflation up by 0.67 percentage points, especially affecting southern Europe.
“Future climate change will amplify the magnitude of such heat extremes, thereby also amplifying their potential impact on inflation,” Kotz said.
