Food prices risk rising in Swedish stores as the El Niño weather phenomenon is expected to be the strongest in a very long time. Swedbank's head of forecasting Andreas Wallström tells TT.
Coffee harvests are expected to be affected, among other things. Inflation could also increase in the long term, according to Wallström.
- If we look ahead to 2027, there is a risk that the Riksbank will feel forced to raise interest rates to curb inflation, he says.
This could in turn negatively affect the Swedish krona exchange rate.
El Niño is expected to be most noticeable this autumn, from August to October. The weather phenomenon is expected to persist until spring.
This is El Niño
- El Niño has existed for 250 million years and occurs irregularly in the Pacific Ocean with an interval of two to seven years.
- In normal years, winds blow from South America towards Asia and push warm surface water in the Pacific Ocean towards Australia and Indonesia. The cold deep-sea water is in turn pushed towards South America.
- When El Niño strikes, the winds are affected and can change direction. This causes the warm water to move towards South America, resulting in heavy rain and flooding.
- At the same time, it causes drought in Southeast Asia and Australia.
- Now El Niño is manifested in, among other things, extreme heat in the Pacific Ocean, which can intensify heat waves, droughts and floods in several parts of the world.
Källa: TT
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