There’s strong evidence that type 2 diabetes (and possibly prediabetes) increases the risk of age-related cognitive decline and dementia. For instance, a 2012 study in the Archives of Neurology followed people over age 70 for nine years. Those with type 2 diabetes at the start or who later developed it showed faster cognitive decline than others, especially if blood sugar was poorly controlled. This may be because diabetes damages blood vessels, including those in the brain, and increases inflammation. Also, high levels of insulin appear to go along with declining memory.
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