Macro strategists, commodity traders and central-bank risk committees may need to reassess the inflation outlook if an El Niño event intensifies faster than currently anticipated.
An early-onset, high-intensity warming of equatorial Pacific could transmit through crop markets, shipping networks, energy systems and ultimately into headline inflation and monetary-policy decisions, according Michael Ferrari, US-based climate and commodities researcher.
Ferrari is Vice President and Head of Research at Moby, founder of Atlas Research Innovations and Senior Partner at AlphaGeo.
