Climate change can have unexpected effects, even at the grocery store. Over the past four years, food prices have increased by 25 percent, leading to higher costs for staples like beef, sugar, and citrus.
One recent study published in the journal Communications Earth & Environment suggests that extreme heat is a key contributor to rising food prices. Referred to as “heatflation,” this phenomenon could cause food prices to increase by up to 3 percentage points globally and 2 percentage points in North America each year. This will also impact overall inflation, with an annual increase ranging from 0.3 to 1.2 percentage points, depending on carbon emissions.
According to Columbia Business School climate economist Gernot Wagner, these projections are significant, accounting for half of the Federal Reserve’s inflation goal of 2 percent. Recent data from the Labor Department shows a 3.2 percent increase in consumer prices over the past year.
Heat and rising food prices go hand in hand, as demonstrated by Europe’s experience during the 2022 heat waves. This led to a 9.2 percent inflation rate, with extreme weather impacting crops like soy, sunflower, and maize. The study analyzed global price indices over the quarter-century, indicating that no region is immune to the effects of climate change.
These findings paint a concerning picture for the future affordability of food, potentially causing economic dislocation on a large scale. As climate change continues to drive up food prices, terms like “climateflation” and “heatflation” have emerged to describe these phenomena.
While the Inflation Reduction Act may have initially seemed like a marketing term, it now appears to be a fitting descriptor for the challenges posed by climate change. As extreme heat continues to impact food prices, the need for proactive measures becomes increasingly clear.
This story was produced by Grist and reviewed and distributed by Stacker Media.
