JPMorgan Warns ‘Super’ El Niño and Oil Shock Could Prop up Global Inflation

Oil Shock Could Turn Super El Niño Into an Inflation Problem Again

The world isn't just staring down another weather event. It's staring down a weather event colliding with a supply-driven oil shock. JPMorgan warned Friday that a "super" El Niño combined with higher energy prices from the Middle East conflict could slow the decline in global inflation next year, adding roughly 0.3 percentage points to headline inflation worldwide. The bank puts the odds of the current El Niño strengthening into a "very strong" …

Economists warn ‘super’ El Niño and oil shock could prop up global inflation

Rapidly intensifying El Niño weather pattern combined with higher energy prices could add 0.3 percentage points to global inflation next year, economists say

JPMorgan warns ‘super’ El Niño and oil shock could prop up global inflation

By Marc Jones LONDON, July 24 (Reuters) - A rapidly intensifying El Niño weather pattern combined with higher energy prices could add 0.3 percentage points to global inflation next year, hitting emerging markets particularly hard, JPMorgan economists ​...

JPMorgan warns super El Niño and oil shock could prop up global inflation

A potential "super" El Niño, combined with elevated energy prices, could push global inflation higher next year, with emerging markets facing the biggest impact, according to a JPMorgan report. The bank estimates that a strong El Niño could significantly raise food prices, and when coupled with higher fuel and fertiliser costs, could add 0.3 percentage points to global inflation in 2027.

El Niño expected to stress global supply chains

This year’s El Niño weather system, expected to be one of the strongest in decades, could cause a global economic shock that the world is unable to absorb given existing stress on supply chains, Deutsche Bank warned. The phenomenon causes temperature spikes every few years and shifts weather patterns, exacerbating global warming trends: The US can expect wetter conditions, and India weaker monsoons. Disruption to agriculture, hydropower, shippin…

A record El Nino is poised to be next big supply shock for global economy

Kevin Carter/Getty ImagesEl Niño will be another shock that could trigger hotter inflation, Deutsche Bank warns.A strong El Niño could disrupt food, energy, and shipping, sending consumer prices spiking.Volatile weather could amplify upward pressure on prices from the Iran-war oil shock.El Niño is poised to cause the next big inflationary shock to the global economy, Deutsche Bank says.In a note to clients on Monday, the bank warned that a parti…