Historic Droughts Drive Up Prices in Mexico and Brazil

07/02/2021

Source: Foreign Policy

When Mexico’s central bank hiked its interest rates last week, it cited the ongoing drought as a major inflation risk. Meanwhile, Brazil’s inflation has risen to over 8 percent annually amid drought-induced food and electricity price increases.

Inflation is just one hardship that droughts are currently causing in the two countries and their neighbors: Lack of rain is also driving crop loss, migration, and more severe forest fires.

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