Economy
Greenflation
Definition
Inflationary pressure from the energy transition — higher costs of green materials, carbon taxes, and the capital intensity of building renewable infrastructure.
Explanation
Transitioning to clean energy requires enormous investment: mining lithium, cobalt, and rare earths; building solar farms, wind turbines, and EV factories; upgrading power grids. These costs flow through to consumer prices. Some economists argue greenflation is temporary (renewables become cheaper at scale); others warn it's structural.