Major bank warns: El Niño could trigger food price shock

The intensifying El Niño weather phenomenon is raising concerns about a potential global food price shock, according to economists. The likelihood of extreme weather events is increasing as El Niño gains strength more rapidly than typically observed.

Analysts at the major bank Goldman Sachs have issued a warning, highlighting that the availability of essential commodities such as flour, rice, and sugarcane could be significantly affected. This disruption in supply chains is expected to drive up prices for these staple foods worldwide.

The World Meteorological Organization (WMO) has projected that a "strong El Niño" event is expected to occur between July and September. This is noteworthy as El Niño typically reaches its peak intensity much later in the year, usually between November and February. The earlier and stronger onset suggests a heightened risk of associated climate impacts.

Researchers have been monitoring the development of El Niño throughout the spring, with current forecasts indicating a particularly potent event this year. The accelerated strengthening raises concerns about the potential for widespread heatwaves and other extreme weather patterns that can devastate agricultural production.

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The availability of flour, rice, and sugarcane can be affected.