Climate change will further increase food inflation

By: Trademagazin Date: 2024. 04. 16. 12:43

Rising temperatures and extreme weather events can have a serious impact on agriculture and food inflation, according to a recent study by the Potsdam Climate Change Research Institute (PIK).

According to the researchers, an increase in average temperatures could increase food inflation by up to 3.2% per year until 2035, while general inflation could rise by up to 1.18% per year. Dr. Max Kotz, one of the authors of the study, emphasized that these effects affect both rich and poor countries.

The effect of rising temperatures on prices is particularly felt in hot regions and seasons. The report points out that inflation caused by climate change could threaten economic and human well-being, as well as political stability.

The study looked closely at the extremely hot European summer of 2022, when heat and drought had a wide-ranging impact on agriculture and prices. Extreme heat in the summer of 2022 increased food inflation by around 0.6% in Europe, and future warming is expected to exacerbate the effects of such extreme weather events.