Thursday, May 16, 2013

Consumer Prices Fell 0.4% in April

The consumer price index declined 0.4% in April due primarily to falling gasoline prices. Core prices rose at a weak 0.1% in April, matching the previous month’s pace. Consumer prices are now just 1.1% above year-ago levels, the weakest level since late 2010.

The energy index was entirely responsible for April’s decline, plunging 4.3% over the month. This decline is even sharper than the strong 2.6% decline seen the previous month. Seasonally adjusted gasoline prices dropped 8.1% over the month, more than offsetting modest increases in electricity and natural gas prices.

Core price appreciation remained weak, with prices rising just 0.1% for the second consecutive month. This is considerably slower than the 0.3% monthly increases seen at the beginning of the year. Prices for goods failed to appreciate in April, while prices on services rose just 0.1%.

Read the BLS report.

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