US government figures show that consumer prices were flat in April, in line with expectations. But on an annual basis. prices fell at the steepest pace in nearly 14 years.
On a seasonally adjusted basis, the consumer price index (CPI), a measure of the average price of consumer goods and services purchased by households, was unchanged in April, after slipping 0.1% in March, according to Labor Department data.
On a 12-month basis, CPI fell for the second month in a row, by 0.7%, the sharpest plunge since June 1955.
Excluding energy and food, consumer prices rose more than expected, by 0.3% in April from March, boosted by a sharp increase in federal tobacco taxes on April 1.
US industry decline slowing
Separate figures from the Federal Reserve showed that the decline in US industrial production slowed in April, while industry operated at a record low capacity rate.
Industrial output fell 0.5% in April, after a steep 1.7% decline in March, according to seasonally adjusted data. The decline was slightly better than the 0.6% drop expected by most analysts.
Since the recession began in December 2007, industrial output has increased in only two months. On an annual basis, industrial output was 12.5% below its level in April 2008.
The capacity utilisation rate for total industry fell to 69.1% in April, a historical low since the Fed data series began in 1967.
