WASHINGTON (AP) — U.S. consumer prices fell 0.8% in April, the biggest drop since the 2008 financial crisis, with decreases led by a huge drop in gasoline prices and from businesses most affected by the coronavirus shutdowns.
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The Labor Department reported Tuesday that that core prices, which exclude food and energy, fell 0.4% last month, the largest monthly decline in core prices on records that go back to 1957.
The 0.8% drop in overall prices followed a 0.4% drop in March. Gasoline prices fell 20.6% in April and contributed the most to the downward pressure on inflation. Apparel prices, airline fares and hotel and motel room charges all fell sharply last month.
Over the past 12 months, overall prices are up just 0.3% while core inflation is up 1.4%. Both measures are well below the 2% target the Federal Reserve seeks to achieve for annual inflation.