Emerging markets stare at inflation risks as powerful El Niño looms
Complete. Here is the key summaryEmerging economies face heightened inflation risks and potential growth slowdowns due to a powerful El Niño phenomenon. The U.S. NOAA forecasts an 81% chance of a very strong El Niño through October-December, which could drive up food prices. This threat compounds existing strains on emerging markets caused by the Middle East conflict.
By Siddarth S and Johann M Cherian July 27 (Reuters) - Emerging economies already strained by the Middle East conflict face a new threat: a potentially powerful El Niño that could push up food prices and slow growth. The U.S. National Oceanic and Atmospheric Administration is forecasting an 81% chance of a very strong El Niño through October-December period, potentially placing it among the most