Consumer prices show sharp annual decline

WASHINGTON, May 15 (UPI) -- The Consumer Price Index dropped further from April 2008 to April 2009 than in any 12-month period since 1955, the U.S. Labor Department said Friday.

Prices dropped 0.7 percent during the period but were unchanged compared to March, suggesting the a period of deflation was unlikely.

The price index was heavily influenced by food and energy price fluctuations while core prices remained relatively stable.

Compared to a year ago, energy prices have dropped 25.2 percent, the report said. Indexes for motor fuel, natural gas and electricity all fell in April, and food prices fell 0.2 percent.

In April, energy prices dropped 2.4 percent. In March, they dropped 3 percent.

The price index for food consumed at home fell 0.6 percent for the month, although restaurant prices increased. In the past 12 months food prices have risen 3.3 percent.

In April, the housing prices index fell 0.1 percent, transportation prices fell 0.4 percent and medical prices rose 0.4 percent following a 0.2 percent increase in March.