The ECB predicted the acceleration of global inflation due to climate change
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Global warming is starting to have a major impact on inflation, according to the European Central Bank’s (ECB) May report, “The Impact of Global Warming on Inflation: Averages, Seasonality and Extremes.” The contribution of climate change to the annual price increase by 2035 will be 0.32–1.18 percentage points, the regulator’s experts estimated. The authors note that the increase in the average temperature of the Earth will have a greater impact on food inflation. They estimate the contribution to the rise in food prices at 0.92–3.23 percentage points per year. The most significant increase in inflationary pressure will be observed in the countries of Africa, Asia, South and North America.
Extremely high temperatures in the summer of 2022 made an additional contribution to food inflation in Europe by 0.43–0.93 p.p., by 2035 this contribution may double.
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