It is more important to watch the broader impact of climate change on inflation than to focus solely on the effects of El Nino, Carsten Menke of Julius Baer writes in a note. "Although it raises fears about food inflation, there is no clear evidence of El Nino structurally pushing up prices," Menke says. Historically, non-El Nino-related droughts pushed prices up, as did higher energy prices, demonstrating that a mix of factors can hurt agricultural production around the world, Menke adds. With extreme weather risks on the rise, inflation driven by climate change could become more prominent, but it is still remains to be seen whether it means more volatile or lastingly higher food prices, Menke says. (kimberley.kao@wsj.com)