A severe El Niño event, forecast to surpass previous records, is expected to bring extreme heat and dry conditions to key agricultural regions in eastern Australia, raising concerns over food prices in the coming year. Experts warn the weather phenomenon could worsen inflationary pressures on households still grappling with elevated grocery costs, while also challenging economic efforts to stabilize rising prices. With the Bureau of Meteorology predicting record-breaking intensity, the event may further strain global food supplies and domestic supply chains.
Predicted hot and dry weather in growing areas in eastern Australia identified as ‘one of the key issues’ that will affect food prices over next 12 monthsGet our breaking news email, free app or daily news podcastThe most severe El Niño weather event on record threatens to push food prices higher this year, experts say, piling pressure on households already struggling with the post-pandemic spike in grocery bills and complicating the Reserve Bank’s efforts to bring inflation back under control.The Bureau of Meteorology has forecast El Niño will peak in late spring or summer and “reach levels above the warmest observed since reliable records began in 1950”. Continue reading...
