San Francisco Fed says El Nino could raise US inflation
Heads up: A new report from the San Francisco Fed says the current El Nino weather pattern could bump US inflation by about 1% point in 2027.
That's on top of inflation already running higher than the Fed's target, so more interest rate hikes might be on the table.
The report points out that El Nino isn't just about wild weather: it can mess with supply chains and make things pricier across the board.
El Nino nudged prices 0.3%-point
This round of El Nino is shaping up to be one of the strongest ever, bringing big disruptions like droughts and floods.
Researchers found that just between April and July 2026, it may have already nudged prices up by 0.3% point.
While things could settle down by late 2026, they warn we might see another spike in 2027.
Plus, because the US is so connected to global markets now, international shocks hit harder, so keeping an eye on these trends (and possible policy changes) really matters for everyone's wallet.