Asia-Pacific economies, like India, Vietnam, Indonesia and the Philippines, are seeing a surge in prices, with households remaining highly vulnerable to further weather-related supply shocks, including those triggered by the El Nino, S&P Global Ratings has said.
S&P said the effects of the El Nino period starting in 2026 will reach Asia-Pacific mainly through weaker rainfall and climate disruption, and the macroeconomic impact is likely to be manageable.
Key transmission channels include reduced agricultural output, higher food inflation, diminished hydropower generation, and vegetation fires and haze.
S&P said many economies have expanded food buffer stocks, improved import planning and strengthened market management mechanisms to cushion supply disruptions. At the same time, investments in reservoir management, irrigation infrastructure and water governance have strengthened resilience to periods of reduced rainfall.
“In India, strong food and grain buffers for affected .
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