Britain is on the brink of a new inflation crisis – one driven not by interest rates or global markets, but by climate change.
A bombshell report from the Autonomy Institute warns that without urgent action, climate-induced food price rises could plunge 951,000 people into poverty by 2050.
As UK inflation unexpectedly spiked to 3.6% in June, driven by soaring food and energy prices, the report paints a far bleaker picture for the decades ahead.
It predicts a 34% rise in food costs over the next 25 years, fuelled by intensifying heatwaves, droughts and global supply chain disruption.
The warning comes as Britain, a nation that imports nearly half its food, grows increasingly exposed to climate shocks abroad – particularly from key suppliers like Europe and Brazil.
But the threat isn’t only foreign.
Storms and floods wiped out 12% of domestic vegetable production last year and the Climate Change Committee has repeatedly flagged the lack of national resilience planning.
“Climateflation is no longer a distant risk,” said Will Stronge, Chief Executive of the Autonomy Institute. “It’s a present reality.”
The research, which combines climate science, economic modelling and household-level data, shows that food inflation is already closely tracking global temperatures.
As heatwaves hammer agricultural output and extreme weather events multiply, the price of essentials will spiral – hitting children and low-income families hardest.
To stave off this looming crisis, the think tank calls for radical reform. At its core is a new vision for food as a public good – not just a market commodity.
Among its key proposals:
- A universal ‘basket’ of free food essentials for every household
- Publicly funded diners serving hot meals to all, not just those in need
- A national buffer stock of staples to prevent price shocks
- Price controls on core goods to tackle so-called “greedflation”
- Investment in agroecological farming and a basic income for farmers
Stronge added: “We need to build real economic resilience – and that means rethinking what public services can and should offer in the face of climate disruption.”
With the clock ticking and costs already rising, the report urges ministers to stop sleepwalking into disaster and prepare for a world where climate and inflation are inextricably linked.
Inflation driven by the climate? appeared first on Energy Live News.