Due to 'Super El Niño' — will products become more expensive in Israel

The article analyzes the impact of the 'Super El Niño' climate phenomenon on global sugar and food prices, and assesses the possible consequences for Israel. Sugar futures have risen more than 25% since July, pushing global food prices to a three-year high. Brazil, India, and Thailand are experiencing crop problems due to weather anomalies. For Israel, which is dependent on imports, rising prices could lead to higher costs for a wide range of goods and complicate the Bank of Israel's policy.

The article examines the impact of the rare 'Super El Niño' climate phenomenon on global sugar and food prices, and assesses the possible consequences for Israel. According to Bloomberg, raw sugar futures have risen more than 25% since July and about 18% since the beginning of the year, pushing global food prices to their highest level in over three years. In Brazil, heavy rains have disrupted the harvest, and some of the raw material has been diverted to ethanol production, reducing sugar exports by about 2 million tons. In India and Thailand, drought is negatively affecting sugar production. Europe and the US are also facing agricultural problems due to heat. For Israel, which is dependent on imports, rising global prices could lead to increased production costs for local companies and higher prices for a wide range of goods, from beverages to dairy products. This could complicate the Bank of Israel's ability to further lower interest rates. Analyst forecasts are divided: some expect further sugar price increases of about 20%, while others point to a possible decline in demand due to changing consumer habits.