U.S. consumer price inflation eases in April on fall in gasoline prices

U.S. consumer prices dropped 0.8 percent in April, the largest monthly fall since December 2008. Inflation is barely in positive territory. On a year-on-year basis, the consumer price inflation came in at just 0.3 percent, a deceleration from 1.5 percent in March. Gasoline prices fell 20.6 percent, mainly contributing to the monthly fall in consumer prices. Energy prices as a whole fell 10.1 percent sequentially in April, and is down 17.7 percent year-on-year.

Price pressures eased in core rate as well. On a sequential basis, core inflation eased to 0.4 percent, the largest monthly decline in the history of the series. On a year-on-year basis, core inflation slowed down to 1.4 percent from March’s 2.1 percent.

Prices dropped sharply for apparel, motor vehicle insurance, airline fares and lodging away from home. For the first three categories, these falls were the largest in each series’ history. Rent and owners’ equivalent rent both rose 0.2 percent sequentially in the month. Medical care prices rose 0.4 percent, while prescription drug prices rose 0.6 percent.

Food prices rose sharply in the month by 1.5 percent, driven by higher prices at the grocery store, which rose by the largest amount since February 1974.