Beyond Peru: El Niño threatens to raise food prices across Latin America

The article examines the risk that an El Niño episode could reduce agricultural production, disrupt transportation and infrastructure, and raise food prices across Latin America. A Goldman Sachs estimate indicated that food inflation could rise by as much as 1.4 percentage points above normal levels in Argentina, Brazil, Chile, Colombia, Ecuador, Mexico, and Peru. Droughts, heavy rainfall, floods, and high temperatures can affect crops, livestock, fisheries, roads, irrigation canals, and distribution markets. These impacts particularly affect lower-income households, small farmers, fishers, and livestock producers and may undermine food availability, access, utilization, and stability. The article also highlights the importance of early warning systems, assistance to producers, protection of irrigation infrastructure, price information, and programs that sustain access to food.