Climate-driven crop losses are expected to add up to three percentage points to annual food inflation, with prices for virtually all agricultural products forecast to rise this autumn after heatwaves and fires ravaged European farmland.
Grain shortages are pushing animal feed costs higher, threatening dearer meat and dairy, while reduced fruit and vegetable harvests will be reflected in retail prices into next year, industry economists warn. The damage to European food production is estimated at around 20 billion kronor, with nine million tonnes of grain destroyed across the EU and Britain.
Geopolitical disruption compounds the pressure: Russia and Ukraine continue blocking grain and fertiliser shipments through the Black Sea, and a similar blockade has emerged in the Strait of Hormuz following U.S. and Israeli strikes on Iran, leaving autumn grain exports shrouded in uncertainty.