Extreme weather events as a consequence of climate change are no longer an exception, but an increasing phenomenon in terms of frequency and intensity, and their impact is reflected in many aspects of our daily lives, such as the cost of food. In order to study the consequences of the current climate situation from an economic perspective, the Bank of Slovenia used the European Extreme Events Climate Index to analyse extreme weather events.
The report, which is an update of the study published in June 2023, highlights the correlation between climate shocks and the increase in unprocessed food prices. There is also a non-proportional increase in this correlation: more intense extreme events have a greater impact on economic fluctuations than less intense ones. The results highlight a crucial point in fight against climate change: climate variability is directly reflected in the consumer economy.
The full updated report is available at this link.