Climate change has unexpectedly impacted the grocery store, causing food prices to rise by 25 percent over the past four years, affecting staples like beef, sugar, and citrus, as reported by The Washington Post.
A recent study published in the journal Communications Earth & Environment reveals that extreme heat, termed “heatflation,” is driving food prices up globally, with predictions of a 3 percentage point increase per year and a 2 percentage point increase in North America. This can have a significant impact on overall inflation, potentially leading to 0.3 to 1.2 percentage points annually, depending on carbon emissions.
Gernot Wagner, a climate economist at Columbia Business School, considers this increase as “massive,” almost half of the Federal Reserve’s inflation goal of 2 percent. The Labor Department recently reported a 3.2 percent increase in consumer prices over the past year.
Extreme heat directly affects food prices, with withering crops leading to price hikes. For example, Europe experienced a 9.2 percent inflation in 2022, exacerbated by heat waves impacting crops like soy, sunflower, and maize. A new study found that countries in North Africa and the Middle East will face significant price shocks due to high temperatures affecting crops.
Analysis of price indices across 121 countries over the past 25 years shows that no region is immune to the effects of climate change. This can lead to widespread economic dislocation and disruption, making food less affordable in the future.
The terms “heatflation” and “climateflation” have gained attention in relation to rising prices due to climate change. The impact of extreme heat on food prices is significant, and the term “heatflation” might be more appropriate. The Inflation Reduction Act signed by President Joe Biden in 2022 may be more relevant than initially perceived, addressing concerns about rising prices.
This story was produced by Grist and reviewed and distributed by Stacker Media.
