Weather & Science
Brazil’s Lula Gets New Nemesis in Inflation Fight With El Nino’s Return
- Food costs rise, growth estimates worsen as weather takes toll
- Heavy storms disrupt harvests in agricultural powerhouse
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A bumper harvest helped Luiz Inacio Lula da Silva defy pessimistic economic expectations during his first year back in office as Brazil’s president. Fickle Mother Nature is poised to make repeating the feat tougher in 2024.
El Nino, the weather phenomenon with a history of disrupting agricultural powerhouses like Brazil, has returned with a vengeance in the South American summer, unleashing torrential rains in parts of the country and leaving others uncommonly dry. Prices of staples like rice and potatoes are soaring as a result, challenging both the central bank’s plans to continue the interest rate cuts Lula demanded and his campaign promises to deliver cheaper fare to everyday Brazilians.