But as extreme weather events increase in frequency or become even more intense, the unpredictability is becoming more of an economic liability. “And those higher costs are being passed on to consumers.” The rise in food prices is one of the key factors fueling inflation, according to recent CPI data. Extreme weather also can negatively affect companies’ bottom lines, according to research from Paul Griffin, professor of management at UC Davis. Corn crops that died due to extreme heat and drought during a heatwave in Austin, Texas, on Monday, July 11, 2022. Still, the very prospect of more extreme weather could further sap away groundwater and limit the cultivation potential in the future, Smith said.

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