Climate change's impact on prices is more than just hot air

A study reveals the inflationary ripple effects of rising temperatures.

In short:

A new analysis connects increasing temperatures due to climate change to rising food costs and inflation globally.
The research projects significant annual increases in food prices and overall inflation rates over the next decades.
The study by Max Kotz and the European Central Bank examines data from 121 nations, emphasizing the economic repercussions of climate change.

Key quote:

“This is really from my perspective another example of one of the ways in which climate change can undermine human welfare, economic welfare.”

— Max Kotz, Potsdam Institute for Climate Impact Research

Why this matters:

Unpredictable weather patterns such as droughts and floods can devastate crops, reducing supply and causing prices to spike. For many households, especially those in lower-income brackets, food represents a substantial portion of monthly expenses, making any increase in food prices a significant inflationary pressure.

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