ECB’s Elderson Warns of Inflation Risks From Nature Degradation

The European Central Bank must account for risks stemming from damage to nature, a process that could feed inflation in the same way that climate change does, according to Executive Board member Frank Elderson.

“If nature degradation continues, economic activities dependent on ecosystem services will be affected by issues such as supply-chain disruptions, which have an impact on prices and ultimately on inflation,” Elderson said Tuesday in a speech.