Climate change is pushing up food prices — and worrying central banks

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Shifting weather patterns are reducing crop yields and squeezing supplies, creating what could become a permanent source of inflation

Sixty years ago, when Giuseppe Divita’s grandparents opened their olive mill in Chiaramonte Gulfi, Sicily, the Italian island’s climate was ideal for producing the fruit. This is no longer the case, says Divita, who, alongside his brother, runs Oleificio Guccione, which today has its own groves as well as the mill. With average annual temperatures climbing and rainfall dwindling, growing olives and turning them into oil is becoming increasingly difficult.

Some regions or countries may be able to grow more of certain crops as a result of changes in the climate, says Hynes, citing winemaking in England among other examples. Other parts of the world may be able to adapt by switching to hardier crops or more newly developed drought-resistant varieties.

 

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