Rory Green, chief China economist at TS Lombard, highlights that the current weather phenomenon extends beyond mere temperature spikes, acting as a direct shock to global food prices. The impact is particularly acute in India, where the monsoon season—critical for the nation's agricultural output—is already showing signs of a weak start. With rainfall tracking significantly below long-period averages, the Reserve Bank of India faces a narrowing window to manage headline CPI, which has already breached comfortable thresholds due to rising food and fuel costs.

In the Americas, the structural risks are equally pressing. Brazil faces the dual threat of potential hydroelectric shortages and agricultural input constraints, as farmers grapple with higher fertilizer costs and unfavorable global prices. Meanwhile, Mexico is contending with persistent volatility in its fruit and vegetable markets, where inflation has historically outpaced the headline rate during similar weather cycles. As central banks from Banxico to the RBI weigh these supply-side shocks against slowing growth, the prospect of prolonged, weather-driven inflation complicates the path toward monetary easing.