How Climate Change is Driving Up Your Expenses: Understanding the Impact on Your Budget

Money | June 23, 2024, 9:13 a.m.

As the global climate crisis worsens, consumers are experiencing the effects through rising prices and disrupted supply chains. From the beloved bulk store Costco to insurance companies and global trade routes like the Panama Canal, no industry is immune to the impacts of climate change. Scientists predict that rising temperatures will drive up inflation rates, with food prices particularly vulnerable. Crop failures due to extreme weather events are driving up the cost of pantry staples like olive oil, while insurance rates are increasing as insurers struggle to recoup losses from climate-related disasters. In addition, the Panama Canal's reduced traffic due to drought signals potential disruptions in global trade. As climate change continues to intensify, economists warn of longer-term consequences, urging for immediate action to curb greenhouse gas emissions and limit economic disruptions.