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Study Warns: Climate Change to Fuel Rise in Food Prices and Inflation

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Climate change Food prices

Study Warns: Climate Change to Fuel Rise in Food Prices and Inflation

 

A recent study conducted by an environmental scientist in collaboration with the European Central Bank reveals that as temperatures rise due to climate change, food prices and overall inflation will experience an upward trend.

Examining monthly price data of food and various goods alongside temperature and climate factors across 121 nations since 1996, researchers have determined that “weather and climate shocks” will contribute to an increase in the cost of food. The projected rise is estimated to be between 1.5 to 1.8 percentage points annually within the next decade, with even higher impacts expected in regions already experiencing elevated temperatures, such as the Middle East.

These findings, published in the journal Communications, Earth, and the Environment, indicate that by 2035, climate change-induced extreme weather events alone could lead to an overall inflation increase of 0.8 to 0.9 percentage points. Although seemingly modest, these figures hold significance for financial institutions like the US Federal Reserve, which actively combat inflation.

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Lead author of the study, Max Kotz, a climate scientist at the Potsdam Institute for Climate Impact Research in Germany, underscores the broader implications of these findings, stating, “This is really another example of how climate change can undermine human welfare and economic stability.”
Looking ahead to 2060, the study predicts a further escalation in climate-triggered inflation, with global food prices anticipated to surge by 2.2 to 4.3 percentage points annually. This translates to an increase in overall inflation ranging from 1.1 to 2.2 percentage points.

Climate change Food prices

A recent study reveals that as temperatures rise due to climate change, food prices and overall inflation will experience an upward trend.

Gernot Wagner, a climate economist at Columbia University’s business school, comments on what he terms “climateflation,” highlighting the striking nature of the data presented in the study.

Through an analysis of 20,000 data points, Dr. Kotz and European Bank economists establish a causal link between extreme weather events, particularly heatwaves, and rising prices. While discussions around inflation and climate change often focus on rising energy prices, Dr. Kotz emphasizes the additional impact of productivity shocks stemming from climate change-induced weather phenomena.

The study underscores the 2022 European heatwave as a pertinent example, wherein high temperatures significantly reduced food supplies, resulting in a two-thirds of a percentage point increase in food prices and a one-third of a percentage point rise in overall inflation. Dr. Kotz further notes that these price increases were even more pronounced in regions such as Romania, Hungary, and parts of southern Europe.

Frances Moore, an environmental economist at the University of California, Davis, who was not involved in the study, acknowledges the credibility of the findings, particularly the observed relationship between regional temperature anomalies and national inflation.

Dr. Kotz concludes that the inflationary pressure on food and other prices is exacerbated in areas and seasons characterised by hotter temperatures. Consequently, while regions like Europe and North America may experience some impact, the Global South, with its limited resources, may face more severe consequences.

 

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Cadillac Prepares to Expand Electric Vehicle Lineup in Australia

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Cadillac Lyriq crossover Cadillac EV

Cadillac Prepares to Expand Electric Vehicle Lineup in Australia

 

By Jeff Gibbs

Cadillac is poised to make a significant impact in the Australian market with the launch of its electric vehicle (EV) lineup, beginning with the Cadillac Lyriq crossover. Jess Bala, General Motors (GM) Australia and New Zealand’s managing director, indicated that following the introduction of the Cadillac Lyriq crossover, the luxury brand plans to unveil more models by late 2024 or early 2025.

The company’s initial foray into the Australian market will be marked by the Lyriq, which will be built in right-hand drive at GM’s Spring Hill, Tennessee plant. This move is part of Cadillac’s broader strategy to establish a strong foothold in the EV sector globally. While the Lyriq is set to start, GM has not dismissed the possibility of sourcing future models from China, depending on market dynamics and production strategies.

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GM has already laid the groundwork for additional EVs by securing trademarks in Australia for names like Optiq, Escalade iQ, and Vistiq, hinting at what might be next in their lineup. Bala explained that trademarking globally is a standard part of GM’s process to maintain brand consistency as new vehicles are conceptualized and eventually launched.

Cadillac aims to differentiate itself in the competitive luxury EV market by offering a unique buying experience. The brand will sell vehicles through three ‘Cadillac Experience Centres’ located in Melbourne and Sydney, Australia, and Auckland, New Zealand, rather than traditional dealerships. This direct-to-consumer approach is designed to provide a reimagined luxury buying experience that extends from initial inquiry to long-term vehicle ownership.

Despite aiming for “exclusive volumes,” Bala is confident in the brand’s potential in the Australian market, particularly among luxury buyers who see themselves as trendsetters. The Lyriq will be competitively priced within the mid-sized SUV segment, competing with similar offerings from established European luxury brands like BMW’s iX. In the US, the Lyriq starts at around A$90,000, although specific Australian pricing has not been confirmed but expect a starting price of $150,000.

Cadillac’s commitment to an elevated after-sales experience includes providing consistent, high-end service, emphasizing the ongoing relationship with the customer well beyond the initial purchase.

As Cadillac gears up to expand its presence with a range of EVs, it is clear that the luxury automaker is not only challenging competitors but also redefining the luxury car ownership experience in Australia.

 

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Anticipation Builds for RAM 1500 TRX Successor as RAM Signals New Developments

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2025 RAM 1500 RHO

Anticipation Builds for RAM 1500 TRX Successor as RAM Signals New Developments

 

By Jeff Gibbs

As the automotive world continues to evolve, RAM Trucks is not standing still, especially in the high-performance pickup segment. The brand has stirred excitement with a potential successor to the powerful RAM 1500 TRX, as revealed in a LinkedIn post by the company’s marketing chief, Jeff Summers. This post, filled with hidden details from the RAM 1500 RHO’s reveal video, hinted at an even more formidable model in the pipeline.

Current Landscape and Future Potential

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The 2025 RAM 1500 RHO, equipped with a force-fed straight-six engine, aligns with the outputs of other face lifted MY25 RAM 1500 models. Although it marks a significant advancement, it doesn’t directly replace the supercharged 6.2-litre V8-powered TRX known for its raw power and speed. Notably, the RHO’s competitive 0-60 mph acceleration time brings it close to its predecessor’s performance metrics, but enthusiasts and critics know that the TRX’s legacy demands even more.

Clues and Confirmations

In his post, Summers particularly highlighted a dirt bike in the RHO reveal video labeled ‘540’ for horsepower, alongside another bike with a blank label, speculated to represent the horsepower for an upcoming RAM model. This tease suggests that RAM is not only keen on continuing the TRX lineage but is planning to surpass previous benchmarks. RAM CEO Tim Kuniskis further fuelled these speculations at the reveal of the TRX Final Edition by mentioning, “This current chapter in Ram’s high-performance trucks is coming to a close, but it’s not the end of TRX’s story.”

Exploring New Horizons

The speculation around the next TRX includes several exciting powertrain possibilities:

  • Enhanced Six-Cylinder Option: Building on the RHO’s engine, an even more powerful six-cylinder could be in development, pushing the boundaries of what’s possible without a V8.
  • Hybrid Powertrain: Reflecting broader industry trends towards electrification, a hybridised version of the Hurricane engine is a strong contender, potentially offering a blend of traditional combustion power with electric efficiency and torque.
  • Full Electric Configuration: As Stellantis moves towards electrification, a fully electric TRX could transform the concept of high-performance pickups, delivering instant torque and reducing emissions.

Strategic Positioning and Market Impact

The upcoming model is poised to challenge the Ford F-150 Raptor R directly, situating the RHO to contend with the standard F-150 Raptor. This strategic positioning not only diversifies RAM’s offerings but also caters to varying levels of performance needs and preferences within the consumer base.

Expected Timeline and Introduction

Industry insiders anticipate that the new RAM 1500 TRX could be revealed next year as a 2026 model. This timeline allows RAM to perfect the integration of advanced powertrains and perhaps set new standards in truck performance.

Conclusion

As RAM prepares to unveil its next-generation TRX, the automotive community watches with bated breath. With the potential introduction of groundbreaking technologies and powertrains, RAM is not just aiming to continue the TRX legacy; it’s looking to redefine it, ensuring the brand remains at the forefront of the high-performance truck market.

 

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Kia’s 4WD SUV based on Tasman ute

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Kia 4WD SUV based on Tasman ute

Kia’s 4WD SUV based on Tasman ute

 

By Jeff Gibbs

Kia is gearing up to introduce a formidable competitor in the rugged SUV market with its latest project, a ladder-frame 4WD based on its Tasman ute. Newly released renders provide a glimpse into what could potentially shake up the segment currently dominated by models like the Toyota LandCruiser Prado.

The vehicle, still under consideration but increasingly likely due to robust international demand, showcases a blocky design, poised to capitalize on Kia’s new ladder-frame platform initially developed for the Tasman. Although details are still forming, the SUV’s concept stems from substantial insights into the ute’s design and capabilities.

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Anticipation for this rugged SUV is growing not just in Australia but globally, with significant interest from markets like the Middle East and South Africa. These regions, known for their preference for powerful engines and robust vehicles, suggest the inclusion of a V6 engine could be pivotal. Kia may likely equip the SUV with the 3.5-litre V6 engine found in models such as the Carnival and Sorento, which delivers approximately 216kW and 355Nm.

However, enthusiasts and potential buyers will need to be patient. Kia’s focus remains on successfully launching the Tasman ute, scheduled for next year, before expanding its line-up. The potential SUV variant could hit the market by 2025 at the earliest.

Kia’s commitment to setting high standards in the utility segment is clear, with aspirations to benchmark the Tasman ute as a top contender. “We’re definitely aiming for (the benchmark),” stated Kia Australia’s product planning chief, Roland Rivero. “We’re not mucking around when it comes to the ute. We want to make sure that the first attempt at a ute from our brand is one that’s going to do well in our market.”

As the automotive landscape braces for Kia’s next big move, the industry and consumers alike are keenly watching what could be a new leader in the tough, versatile SUV category.

 

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