(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.
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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.
--With assistance from Megan Durisin and Agnieszka de Sousa.
To contact the reporter on this story: Nicholas Larkin in London at nlarkin1@bloomberg.net
To contact the editors responsible for this story: Lynn Thomasson at lthomasson@bloomberg.net, Nicholas Larkin, Liezel Hill
©2020 Bloomberg L.P.
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