Global Warming Projected to Increase Food Prices and Inflation

Global warming and heatwaves are poised to exacerbate food prices and inflation on a global scale, as per recent findings from scientists and the European Central Bank. The study, published in the Journal Communications Earth and Environment, underscores that this impact will be widespread, with developing nations bearing a significant brunt.

As climate change leads to more frequent extreme weather events like heatwaves, droughts, and floods, key sectors such as farming and food production are increasingly vulnerable. Drawing on data spanning from 1996 to 2021 across 121 countries, researchers from the Potsdam Institute for Climate Impact Research and the European Central Bank predict a notable rise in food prices worldwide by 2035 due to rising temperatures, ranging between 1.49 and 1.79 percentage points annually.

Moreover, the study highlights that the escalation in overall inflation is also anticipated, with a projected increase of 0.76 to 0.91 percentage points. Maximilian Kotz, one of the report’s authors from PIK, emphasized the significance of temperature fluctuations, particularly in warmer regions, which would intensify the inflationary pressures, notably impacting food prices.

Africa and South America are expected to bear the brunt of these effects, although the impact will reverberate globally. While the study indicates a surge in food prices primarily during the summer in the northern hemisphere, other regions may experience price hikes throughout the year. Notably, apart from electricity prices, the study did not find a substantial impact of global warming on other household expenses.