A new study from the European Central Bank has uncovered the costly effect of extreme weather events on grocery prices, reported In Cyprus.

What's happening?

The ECB analysis found that coffee, tea, meat, cocoa, and sweets made up 50% of food inflation last year. Yet, they account for 25% of the Harmonised Index of Consumer Prices food basket, which measures grocery prices across the EU. This means that these items are disproportionately contributing to the high cost of food compared to how much we eat them.

Economists attribute the price hikes to extreme weather events, which are a product of warming global temperatures. 

The analysis found that cocoa and chocolate's prices rose a lot, doubling in price from January 2024. Experts estimated that heatwaves across the region will increase unprocessed food costs by 0.4% to 0.7% in the next year. Meanwhile, meat prices peaked last June amid high demand and limited supply.

How does extreme weather affect food supply?

Extreme weather events have been exacerbated by pollution-spewing human activity, such as fossil fuel or plastic usage. These things contribute to rising global temperatures, which worsen droughts, floods, fires, heatwaves, storms, and more. 

Agriculture is heavily dependent on the weather. Because the seasons have become more unpredictable, crops have been wiped out or have been unable to grow. 

There have been cocoa shortages in Ghana and the Ivory Coast due to heat waves and torrential rains. This has led to companies like Hershey increasing their prices. 

While cocoa isn't essential for all, other pantry items are at the mercy of rising temperatures as well.

Staple crops like corn and rice are expected to increase in price this year because of pests, which are thriving in these warmer temperatures. These price and supply fluctuations come at a time when food insecurity is on the rise. Therefore, it's imperative to address critical climate issues now to ensure a secure future. 

What's being done about food prices?

Scientists have been working on ways to make certain crops more resilient in inclement weather, including by altering their genetics.

The ECB report found that food inflation should decline in the short term, reaching about 2.1% by the middle of 2026. Despite these conditions, consumers can take steps to shop smarter at the grocery store and save more.

What's the most you'd pay per month to put solar panels on your roof if there was no down payment? $200 or more 💰 $100 💸 $30 💵 I'd only do it if someone else paid for it 😎 Click your choice to see results and speak your mind.

Get TCD's free newsletters for easy tips to save more, waste less, and make smarter choices — and earn up to $5,000 toward clean upgrades in TCD's exclusive Rewards Club.