Why Climate Resilience Is Vital for India's Economy
Why Climate Resilience Is Vital for India's Economy
Global · Published Oct 21, 2026
• Climate shocks like failed monsoons and heatwaves disrupt agriculture, leading to food inflation and economic instability.
• Learn why building climate resilience is crucial for India's food security and economic stability.

How Climate Shocks Drive Persistent Food Inflation

Recurring climate shocks can turn temporary price increases into long-term food inflation. A study published in the Reserve Bank of India Bulletin highlighted that these disruptions not only affect food prices but can also spill over into non-food inflation through altered economic expectations. This creates a cycle where higher food prices influence wages and production costs, further exacerbating inflation.

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