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Thursday, May 21, 2020
HomeNewsEconomyConsumer Price Index (CPI) Posts Largest Monthly Decline Since December 2008

Consumer Price Index (CPI) Posts Largest Monthly Decline Since December 2008

Consumer Price Index (CPI) graphic concept. (Photo: AdobeStock)

Washington, D.C. (PPD) — The Consumer Price Index (CPI) fell 0.8% in April, the largest monthly decline since December 2008. Over the last 12 months, the all items index rose 0.3% not seasonally adjusted.

Forecasts ranged from a low of -0.9% to a high of -0.5%. The consensus forecast was -0.8%.

The largest contributor to the monthly decline in the seasonally adjusted all items CPI was a 20.6% drop in the gasoline index. Still, the indexes for apparel, motor vehicle insurance, airline fares, and lodging all fell significantly, as well.

In contrast and unsurprisingly, food indexes rose sharply in April. The
index for food at home posted its largest monthly increase since February 1974. The food index gained 3.5% over the last 12 months, its largest 12-month increase since February 2012.

Consumer Price Index (CPI) graphic concept. (Photo: AdobeStock)
Consumer Price Index (CPI) graphic concept. (Photo: AdobeStock)

The energy index declined mostly due to the decrease in the gasoline index, though some components in energy rose. The index for all items less food and energy fell 0.4% in April, the largest monthly decline in the
history of the series dating back to 1957.

Meanwhile, the cost of living in other noteworthy areas continued to rise. The indexes for rent, owners’ equivalent rent, medical care, and household furnishings and operations all increased in April.

The all items index rose 0.3% for the 12 months ending April, which is the smallest 12-month increase since October 2015. The index for all items less food and energy gained 1.4% over the last 12 months, the smallest increase since April 2011. The energy index fell 17.7% over the last year.

Written by
Staff Writing Group

PPD Business, the economy-reporting arm of People's Pundit Daily, is "making sense of current events." We are a no-holds barred, news reporting pundit of, by, and for the people.

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