A study reveals the inflationary ripple effects of rising temperatures.
Seth Borenstein reports for the Associated Press.
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.
