El Nino Poses Inflation Risk in 2027 Says SF Fed
Research from the San Francisco Federal Reserve indicates that the current El Nino weather pattern poses a meaningful risk of higher US inflation by 2027. While potentially boosting employment, the climate event could push price levels up by as much as one percentage point.
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The El Nino weather pattern could push United States inflation up by as much as 1 percentage point in 2027, according to research published Monday by the San Francisco Federal Reserve. The projection follows estimates that the current weather cycle already increased headline prices by 0.3 percentage point between April and July. The findings highlight new climate-driven risks to price stability as the central bank works to return inflation to its 2% target.
