Here’s how extreme weather is driving inflation

Jeff Berardelli is WFLA’s Chief Meteorologist and Climate Specialist

TAMPA, Fla. (WFLA) — In today’s Climate Classroom, we will be speaking to William S. Becker, a writer for The Hill , a Nexstar-owned property on climate inflation, better known by its new name “climateflation.”

No doubt it’s a new term to most, but it’s very real and it’s already hitting us in the wallet— think homeowners insurance, air conditioning, food and much more.

In Florida, it is most noticeable when it comes to recent spikes in homeowners insurance. Floridians pay the most in the nation at an average of $6,000 in 2023 – 42% higher than the year before and are far and above the national average of $1,700.

While many factors can help explain this— extreme weather is a big one. We are more exposed to catastrophic damages from hurricanes than any other state. According to Policy Genius, extreme weather is the number one driver of higher insurance premiums across the U.S.

Here in Florida, the risk of more frequent stronger hurricanes is on the rise, more people and property are in harm’s way and replacement costs are rising.

However, climate inflation is not just limited to homeowners insurance. As summers get hotter, and heat waves hit harder, air conditioning use is going up, not just in Florida but all over the world.

A recent study found that for the average U.S. home, the cost of summer cooling has risen from $476 in 2014 to a predicted $719 in 2024 – a 50% increase in just 10 years.

While this seems like an obvious impact of climate change, perhaps less obvious is how it impacts the cost of food. The science is unequivocal that heat waves and droughts are becoming more frequent and more intense, which is leading to multiple crop failures all around the world, leading to less supply, and ultimately higher prices.

Olive oil is one example. Olive oil producers listed climate change as their top concern , as 2023-2024 was one of the toughest harvests on record. Around 4,500 farmers in 34 countries were surveyed by the Olive Oil Times, rating this past harvest as the worst on record, saying they are disappointed in both the quantity and quality of the harvests. As a result, oil production was estimated to be the lowest in at least 10 years, driving prices up.

The same can be said about other crops like chocolate, rice, soybeans and potatoes — all impacted by climate change and extreme weather.

And the impact of climate on our lives will only grow as temperatures grow. A recent paper found that climate change and extreme weather will continue to put pressure on prices, with food inflation expected to increase up to 3% per year and headline inflation expected to increase by ~1% per year through 2035.

This is why scientists say that dealing with slowing climate change now will be less expensive than dealing with the worsening impacts years down the road.

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