US grocery prices have increased by 3% over the last year, according to the latest Consumer Price Index report. While not dramatic, this rise is concerning for lower-income families whose budgets are already tight. The culprit behind this quiet price hike? Climate change.
The impact of climate change on food production is being felt globally. Heat and drought in major coffee-producing countries like Brazil and Vietnam have led to a 13.4% increase in coffee prices since last June. However, not all inflation is due to climate change. Egg prices are up 27.3%, largely due to bird flu, while chicken prices rose 3.9% after mass culling of flocks.
Extreme weather events, such as heavy rainfall and heatwaves, are also contributing to global price shocks. For example, Spain’s olive oil production has declined by 50% due to drought, leading to a sharp increase in prices. In Japan, an August heatwave sent rice prices up 48%, while Ghana and Ivory Coast faced extreme temperatures that drove cocoa prices almost 300% higher.
Climate experts warn that until global emissions reach net-zero, extreme weather events will worsen, damaging crops and pushing food prices upward worldwide.
Source: https://www.axios.com/2025/07/21/food-inflation-prices-climate-change