Climate impact on price stability – ECB Working Paper No. 2821
The source uses historical consumer price data to establish that rising average monthly temperatures and heat extremes drive non-linear upward pressures on food and headline inflation globally, specifically showing that the 2022 European summer heatwave increased European food inflation by approximately 0.67 percentage points.[1]
[1] Climate impact on price stability – ECB Working Paper No. 2821Other
European Central Bank · 10 Mar 2024
This evidence directly supports the claim by providing empirical proof that extreme heat events from climate change are actively driving up food inflation and overall cost-of-living expenses across Europe.
The study notes that actual future inflationary impacts depend heavily on the extent of adaptation measures implemented and that weather effects vary significantly depending on the baseline temperature of the region and season.