“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”
Sam Ewing, Athlete
As the regular food shopper in our house, I continue to be astonished by the prices of groceries. While costs of other things have settled down post-pandemic, food costs – both in grocery stores and in restaurants – still seem sky-high. Today I’m taking a look at grocery inflation and the link to extreme weather.
Although the rate of inflation for food costs has slowed significantly, the increase is still expected to be 2.5% for 2024. While an annoyance to some, this represents a real problem to millions of families.
What is to blame for grocery inflation?
The factors contributing to higher food costs are complex. Higher labor costs, global conflicts, and soaring profits among big consumer companies are contributing to the problem. Extreme weather is another major factor. While El Niño is making matters worse this year, climate change is the insidious threat.
The link to extreme weather
I have written before about the impacts of extreme weather on some common favorites like wine and coffee. Continuously rising costs on these and other staples are worrisome for the economy and for consumers. For example:
- Cocoa prices just hit a record high, partly due to extreme conditions in West Africa
- Recent droughts in Asia have resulted smaller rice harvests, causing a spike in prices
- Rice farmers in the US have been receiving assistance to compensate for losses from droughts and flooding
- Climate change is starting to have an impact on banana production and costs
With warmer temperatures and extreme weather on the rise, scenarios like these will be more common in the coming years. Farmers need to prepare and adapt to the changing climate, and crops will begin to shift to different regions. Cutting heat-trapping emissions will go along way to keeping future food costs in check.
Let’s do something about climate change. Learn about it. Think about it. Talk about it.