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DROUGHT: Major effects on Argentina, Paraguay and Uruguay
The three countries are enduring what metereologists say is the worst drought in two generations. The drought will have several effects. The first is that it will restrict exports of agricultural commodities. The second is that it will put pressure on fresh water supplies for urban areas: already Rosario in Argentina is starting to run short of drinking water. The third effect will be to push up inflation rates, as fresh food prices rise. This effect is likely to be serious, as fresh food prices usually start to fall at the end of the southern hemisphere's summer.
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