Record strength El Niño could mean bigger supermarket bills for Australians, experts warn
A record-breaking El Niño event is expected to drive up food prices in Australia over the next year. Experts warn that the resulting hot and dry weather will impact agricultural output, potentially complicating the Reserve Bank's efforts to manage inflation.
Why it matters
Rising food costs exacerbate cost-of-living pressures for households and influence central bank monetary policy decisions.
RBA officials are concerned a severe El Niño could drive food prices higher and create a further headache later this year, when the central bank is contemplating whether it needs to hike interest rates again. Photograph: Sam Mooy/AAP RBA officials are concerned a severe El Niño could drive food prices higher and create a further headache later this year, when the central bank is contemplating whether it needs to hike interest rates again. Photograph: Sam Mooy/AAP Australian economy Record strength El Niño could mean bigger supermarket bills for Australians, experts warn Predicted hot and dry weather in growing areas in eastern Australia identified as ‘one of the key issues’ that will affect food prices over next 12 months
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