Climateflation: macroeconomic effects of climate change

While the research on climate risks is advancing, there is uncertainty surrounding the impact of climate change on future inflation. Natural disasters and weather-related hazards pose an increased risk to human health and the environment as well as affecting inflation and economic growth.

According to the European Central Bank, global warming projected for 2035 would amplify food inflation by 50%. This roundtable will explore the impact of physical climate risks on inflation and what it means for the monetary policy and the central bank’s price stability mandate.