A recent inflation study reveals that increased temperatures are linked to higher food prices.

According to a new study by an environmental scientist and the European Central Bank, rising temperatures due to climate change will lead to increased food prices and overall inflation. Analyzing monthly price data of food and various goods alongside climate factors in 121 nations since 1996, researchers project that “weather and climate shocks” will drive up food costs. The anticipated increase would be between 1.5 to 1.8 percentage points annually within a decade, with hotter regions like the Middle East experiencing even steeper hikes. Published in the journal Communications, Earth and the Environment, the study estimates that this trend will contribute to an overall inflation uptick of 0.8 to 0.9 percentage points by 2035 solely due to climate-induced extreme weather. While these figures may seem modest, they hold significant implications for institutions such as the US Federal Reserve, which actively combat inflation, notes Max Kotz, the lead author of the study and a climate scientist at the Potsdam Institute for Climate Impact Research in Germany.