There is a growing chance of a La Niña weather pattern taking hold in the second half of this year. While the economic effects would depend on its severity and length, La Niña events tend to coincide with higher food inflation across Latin America, which would add to the reasons for central banks to move slowly with monetary easing cycles. Argentina and Brazil would probably be worst affected, while there could be some benefits for Peru and other countries on the west coast of South America.
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