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(Bloomberg) — International meals prices edged down once more, extending their retreat to the bottom in 17 months, though customers proceed to really feel the pinch at grocery shops.

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A United Nations’ index of food-commodity prices eased 0.6% in February, down for an eleventh month within the longest run of losses in information going again three a long time. Final month’s fall was pushed by cooking oils and dairy, and the general gauge is down 19% from a file set a 12 months in the past when Russia’s invasion of Ukraine disrupted grain exports.

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A 12 months into the conflict, wheat costs are beneath stress from ample harvests in producers like Russia and Australia, whereas vegetable oils and meat prices have additionally slid. Nonetheless, it takes time for that to filter by way of to shops, the place costs are additionally saved excessive due to power, labor and transport prices.

For instance, greater meals costs not too long ago helped push up French shopper costs by a euro-era file, and UK grocery inflation surged to a recent peak. It’s an issue squeezing households around the globe — and buyers should face extra worth hikes.

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“There’s nonetheless a whole lot of price inflation to be recovered,” stated John Bason, finance director at Related British Meals Plc. Robust business negotiations are “a truth of life between suppliers and supermarkets. All of us acknowledge that it is a robust time for everybody,” he stated.

World Financial institution information printed this week confirmed excessive food-price inflation in virtually all low- and middle-income nations. About 87% of high-income nations are experiencing elevated worth will increase too. 

The UN’s index, which tracks 5 main exported meals teams, is on the lowest since September 2021. Sugar costs rose final month, whereas meat and grains have been little modified, its Meals and Agriculture Group stated Friday.

There are nonetheless indicators that meals inflation in some components of the world could also be easing. Paraguay reported the bottom inflation since December 2021 because of a moderation in meals and gasoline costs.

US fast-food chain Wendy’s Co. expects commodity inflation within the mid-single digits this 12 months and beef to be barely deflationary in its present fiscal 12 months, Chief Monetary Officer Gunther Plosch stated this week. Kraft Heinz Co. stated that it doesn’t plan extra worth will increase throughout North America, Europe, Latin America and most of Asia.

—With help from Katie Linsell, Leslie Patton and Deena Shanker.