Study Predicts “Climateflation”: Climate Change to Drive Up Food Prices and Inflation

A new study by an environmental scientist and the European Central Bank, published in the journal Communications, Earth and the Environment, forecasts that climate change will significantly affect global economies by increasing food prices and overall inflation. The research, which examined data from 121 nations since 1996, indicates that weather and climate shocks could cause food prices to rise by 1.5 to 1.8 percentage points annually within a decade, leading to an overall inflation increase of 0.8 to 0.9 percentage points by 2035. The study emphasizes that these changes, though seemingly small, are substantial for economies and central banks combating inflation. By 2060, the situation is expected to worsen, with food prices potentially increasing by 2.2 to 4.3 percentage points annually, translating to a 1.1 to 2.2 percentage point surge in overall inflation.