Food costs extend slide, raising hopes for cheaper groceries
Index of food commodity costs fell by 1.4% in June
Global food prices extended their slide to a two-year low, adding to hopes that the declines will eventually trickle through to grocery stores.
An index of food-commodity costs fell 1.4 per cent in June, marking the 14th drop in the past 15 months, the United Nations’ Food and Agriculture Organization said Friday. Last month’s decline was led by cheaper grains, vegetable oil and sugar.
The slump in the gauge from last year’s record has taken time to feed through to consumers, with transport, labor and energy costs remaining high. Still, there are signs that grocery prices in nations like the UK are starting to ease, which could bring some relief to stretched households.
After a dry start to summer, rains in the US Midwest have boosted prospects for this year’s corn crop, and Brazil is starting a bumper harvest of its own. The outlook for indulgent treats could also begin to ease, as sugar prices fell for the first time in five months. Yet prices remain historically high and unfavorable weather is threatening West African cocoa supplies