Climate change can impact unexpected places, like the grocery store, where food prices have increased by 25 percent over the past four years. Staples such as beef, sugar, and citrus have seen significant cost hikes.
A recent study published in the journal Communications Earth & Environment warns that extreme heat is driving up food prices and predicts a potential 3 percentage point increase globally and 2 percentage points in North America within a decade. This could contribute to an annual inflation increase of 0.3 to 1.2 percentage points, depending on carbon emissions.
Gernot Wagner, a climate economist at Columbia Business School, notes that this may seem small but is actually significant, equating to half of the Federal Reserve’s inflation target of 2 percent. Consumer prices have already risen 3.2 percent in the past year.
The study highlights the impact of heatwaves on food prices, such as the 2022 European heatwave that contributed to a record 9.2 percent inflation due to crop damage. The research predicts future price shocks in regions like North Africa and the Middle East.
Climate change’s influence on food costs raises concerns about future affordability, with potential economic dislocation at a larger scale than the pandemic. The connection between climate change and inflation, referred to as “climateflation,” has gained attention recently.
The study suggests that “heatflation” might be a more accurate term for the link between extreme heat and rising prices. The new legislation addressing climate change may have a more fitting name than initially perceived.
This story was produced by Grist and reviewed and distributed by Stacker Media.
