Strong El Niño raises inflation and increases the cost of food and energy in Brazil
Learn how the El Niño phenomenon is expected to pressure inflation and increase the cost of food, meat, and electricity in Brazil between 2026 and 2027.
TL;DR
- El Niño is expected to peak between late 2026 and early 2027 with an 83% chance of being very strong.
- Disrupted rainfall patterns will negatively affect crop yields and increase food prices, especially for fresh produce.
- Meat prices will rise due to impacts on pastures and the cost of animal feed derived from grains like soy and corn.
- Droughts caused by El Niño will lead to increased reliance on more expensive thermal power plants, raising electricity costs.
- Logistical challenges in the Amazon region due to low river levels are increasing transportation costs for goods, which will be passed on to consumers.