According to a recent economic research report from the San Francisco Federal Reserve, this year's extremely intense El Niño phenomenon may push up the prices of food and core services in the US and boost employment in 2027. Research estimates that El Niño has raised the price level of US personal consumption expenditure by about 0.3 percentage points from April to July this year. It is expected that this effect will subside before the end of the year; however, if it turns into a La Niña phenomenon next year, PCE inflation may rise by an additional 1 percentage point in 2027.

Zhitongcaijing · 1d ago
According to a recent economic research report from the San Francisco Federal Reserve, this year's extremely intense El Niño phenomenon may push up the prices of food and core services in the US and boost employment in 2027. Research estimates that El Niño has raised the price level of US personal consumption expenditure by about 0.3 percentage points from April to July this year. It is expected that this effect will subside before the end of the year; however, if it turns into a La Niña phenomenon next year, PCE inflation may rise by an additional 1 percentage point in 2027.