Chimney of an industrial factory emitting smoke and gas into the atmosphere. Stock Photo/Getty Images
Global warming and extreme heat will drive up inflation, a new study suggests.
Over the next decade, climate change could drive up food inflation by up to 3.23 percent per year and headline inflation by up to 1.18 percent.
“A worst-case emissions scenario would push food inflation above 4 percent across much of the world [pro Jahr] cause.”
This is a machine translation of an article from our US colleagues at Business Insider. It was automatically translated and checked by a real editor.
Climate change is further fueling inflation. The effects of global warming and extreme heat are expected to lead to continued increases and inflation in food prices, according to a new study published in the journal Communications Earth & Environment.
The research suggests that rising temperatures could potentially have significant economic impacts. In particular, the prices of food and media could be affected. “We find that the temperature conditions forecast for 2035 mean increasing inflationary pressure worldwide in the event of future warming,” write the researchers from the Potsdam Institute for Climate Impact Research and the European Central Bank.
This could cause global average food inflation to rise by up to 3.23 percent per year. Overall inflation could also rise by up to 1.18 percent in the next decade. They write that the magnitude of estimated inflationary pressures in the different emissions scenarios differs greatly beyond 2035. This suggests that a decisive reduction in greenhouse gas emissions could significantly reduce this pressure.
Climate change has already begun to impact parts of the economy. This is reflected in rising housing costs in regions at increased climate risk and serious shortages of food supplies worldwide, from olive oil to cocoa. Food will likely be the largest component of inflation affected, the researchers write. The impact on inflation would also be one-sided. However, countries in Africa and South America would feel the greatest pressure.
This pressure could be contained with the right policy approach. But researchers also warned that the inflationary impact will only get worse if emissions are not reduced. “In the best case, exogenous pressures on inflation in 2060 are only slightly greater than in 2035, but in the worst case, pressures on food inflation would be 4 percent across much of the world [pro Jahr] “exceed,” say the researchers.
External content not available
Do you have a contentpass subscription but still don’t want to miss out on displaying external content from third-party providers? Then click on “agree” and we will integrate external content and services from selected third-party providers into our offer to improve your user experience. You can view a current list of these third parties at any time in your privacy (link to privacy). In this context, usage profiles (including based on cookie IDs) can also be created and enriched, even outside the EEA. In this case, your consent also includes the transfer of certain personal data to third countries, including the USA in accordance with Article 49 Paragraph 1 Letter a) GDPR. Further details on data processing can be found in our data protection information and privacy policy, which are available at any time in the footer of our offer. You can exercise your consent to the integration of external content at any time in the footer of our offer via the “Revocation Tracking” link.
Agree and view external content
Read too
“Climate change is making the world more unsafe”: Pentagon chief warns of new security risks