(Bloomberg) -- Consumers worried about coronavirus cases spreading around the world are finding some relief in food bills as costs ease from a five-year high.
A United Nations gauge of global food prices fell 1% in February. The drop was driven by slumping vegetable-oil prices on concern the virus will hurt demand, while Chinese meat imports slowed because of port-handling delays. Corn costs also ebbed on expectations a weaker economy will curb animal-feed usage.
The retreat offers consumers some relief after pig-disease outbreaks last year and tighter oilseed markets boosted grocery bills, stoking inflation in economies from Asia to Africa to South America. More recently, a stockpiling frenzy that hit supermarkets in Asia has spread to Europe as people hoard groceries and other products on fears that the virus outbreak will worsen.
Still, it wasn’t just the coronavirus that weighed on food prices last month. Palm-oil costs fell partly on higher-than-expected output in Malaysia, wheat supplies remained abundant and slaughter rates in New Zealand put pressure on lamb prices, the UN’s Food & Agriculture Organization said on its website.
Some food costs even rose. A gauge of sugar prices climbed on lower crop potentials in India and Thailand and dairy costs advanced on reduced milk output in Australia.
©2020 Bloomberg L.P.
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