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According to the FAO, food prices are currently about 30% higher than in 2020, with meat and oilseeds rising sharply since then. In 2023, the ECB published a study called "The asymmetric effects of weather shocks on euro area inflation" that reached a similar conclusion after examining the four largest European Union economies. "With a changing climate implying an increased frequency and severity of extremes in Europe, the shocks studied here can be expected to occur more frequently and could lead to persistent upward pressures on inflation, especially from extreme temperatures in summer," it read. "Given the differing impacts of shocks in different seasons and across countries, our results also suggest that climate change could enhance heterogeneity of inflation developments across euro area countries." According to the ECB, the inflation rate in the euro area in June this year ranged from 2% in France to 5.4% in Lithuania . One thing is especially important now: stock, stock, stock." He explained that this was the lesson learned from recent supply chain crises. "Whether the COVID-19 crisis , the war in Ukraine or the closure of the Strait of Hormuz ,” he said, "higher inventory levels are a kind of insurance premium in a world that is so unpredictable on so many fronts." This article was originally published in German.
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