Extreme weather causes food prices to explode

Previous studies have shown that high temperatures, which lead to declining yields, drive general food inflation in the long term, reports the FT. In contrast, more recent research shows that certain food products also experience significantly stronger price increases in the short term, fueling inflation.

According to the FT, the price of olive oil rose by 50 percent last year following droughts in southern Spain in 2022 and 2023. In India, a heatwave in May last year drove up onion prices by 89 percent, and in Korea, cabbage prices rose by 70 percent after the record summer heat. The researchers cite further examples: In Japan, rice prices climbed by 48 percent across the region in September following a heatwave in August, and vegetable prices in China rose by 30 percent. The scientists found even higher price increases for vegetables in California and Arizona in November 2022 following droughts.