Global warming could add 3.2 percentage points to inflation

Global warming is adding to the problems of the world. The year 2023 was the warmest year in history and the repercussions will be felt in near future.

A new research has said that global warming could add up to 3.2 percentage points to food inflation every year in a decade. The poor countries will be hit more than the rich, the researcgh says.

The effect of inflation will be felt more in the lower latitdue countries than the countries in higher latitude. The lower latitude countries may face year-long inflation while the higher ones will face the inflationary pressure only during summers.

It also projected that the pressure on overall inflation could be 0.3-1.2 percentage points at the temperatures that the world will likely see in 2035.

The authors, including those from Potsdam Institute for Climate Impact Research, Germany, estimated that heat extremes during the summer of 2022 raised food inflation in Europe by 0.67 per cent, an increase that could be amplified by 30-50 per cent under 2035 warming scenarios.

Among regions, Africa and South America are likely to face a greater impact. But the impact in South East Asia could not be gauged due to lack of detailed  information.

The findings have been published in the journal Communications Earth and Environment.
For the study, the researchers analysed monthly national consumer price indices and weather data across 121 countries between 1991-2020. They combined the results with projections from a physical climate model to estimate how rising temperatures impacted inflation between 2030 and 2060.
Even as climate change is likely to increase the price of food in the future, the authors suggested that mitigation of greenhouse gas emissions and technology-based adaptations could substantially limit this risk to the global economy.