ECB warns about nature’s role in inflation risks

The European Central Bank (ECB) must account for risks arising from environmental degradation, Dutch ECB board member Frank Elderson warned Tuesday. Speaking at Euro Finance Week in Frankfurt, Elderson highlighted how nature loss could drive inflation similarly to climate change.“If nature’s degradation continues, economic activities reliant on ecosystem services will be affected by disruptions in supply chains, influencing prices and, ultimately, inflation,” Elderson said.