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Climate change threatens food price stability. This is the sobering finding of a new study published a few days ago in the journal “Communication Earth & Environment” by researchers from the Potsdam Institute for Climate Impact Research and the European Central Bank.
Simply put, researchers examined known climate impacts on the prices of 27,000 products and linked them to 2035 temperature increase predictions. Conclusion: Climate change will increase food inflation by 0.92 to 3.23 percent per year by 2035. This means that overall inflation, driven by food alone, will increase by 0.32 to 1.18 percentage points.
This range results from different emissions scenarios and climate models. Even in the best-case scenario, food is a strong driver of inflation. In the worst case, climate change alone could cause increases in food prices of up to 4 percent per year, with particularly dire consequences for poor countries. The United Nations estimates that 71 million more people will fall into poverty in 2021 alone due to rising food prices.
The first strong price increases have arrived
Climate change is already being noticed in the food industry. This is why there are bottlenecks in food supply around the world. The most recent examples that we feel in our wallets: olive oil and cocoa.
“Business Insider” writes that inflationary pressure can be brought under control with the right political approach. In other words: the faster we reduce emissions, the better we can reduce inflationary pressure on food.
However, the results clearly show that climate change will put continued pressure on inflation levels.
Source :Blick
I’m Tim David and I work as an author for 24 Instant News, covering the Market section. With a Bachelor’s Degree in Journalism, my mission is to provide accurate, timely and insightful news coverage that helps our readers stay informed about the latest trends in the market. My writing style is focused on making complex economic topics easy to understand for everyone.
