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Hotter Summers Mean More Inflation Pressure, ECB Study Shows
Scorching summer heat across the euro zone will likely worsen due to climate change and leave consumers facing higher prices, according to research by the European Central Bank. Above-average temperatures, especially around the middle of the year, have the biggest impact on unprocessed food costs, according to a paper covering the bloc’s top four economies. Reasons may include lower agricultural and labor productivity, and drops in fresh-food supplies, authors Matteo Ciccarelli, Friderike Kuik and Catalina Martinez Hernandez said. “As climate change brings more frequent and more severe weather shocks, the ... (full story)