A record-breaking heat wave has scorched Europe this week, with temperatures climbing to historic highs. France saw temperatures above 110 degrees Fahrenheit, according to a report by Bloomberg.
Bloomberg News Weather and Climate Reporter Joe Wertz and Climate Reporter Emma Court warned that such extreme heat events are likely to become more frequent globally. The two reporters appeared on Bloomberg This Weekend to discuss the financial consequences of the trend.
The term being used to describe those consequences is climate inflation. Extreme heat and the disruptions it causes to agriculture, energy, transportation, and infrastructure place additional financial burdens on consumers. As heat events grow more intense and more frequent, those costs are expected to rise as well.
The reporters did not specify which categories of consumer spending face the largest near-term pressure, but the broader warning centered on the idea that climate-driven disruptions are moving from occasional shocks to a recurring economic force.