Breaking News

Consumer Prices Fall 0.3 Pct., Core Flat

May 16, 2003
/ Print / Reprints /
/ Text Size+
WASHINGTON (Reuters) - A sharp drop in energy costs helped pull consumer prices down in April, but even without volatile energy costs prices were unchanged, the government said on Friday in a report likely to fan fears of deflation.

The Consumer Price Index, the most popular gauge of U.S. inflation, fell 0.3 percent last month, the Labor Department said. The so-called core CPI, which excludes volatile food and energy prices, was unchanged for the second consecutive month.

Economists polled by Reuters had expected the CPI to dip 0.1 percent, with the core index up 0.2 percent.

It was the first time since two back-to-back declines in late 1982 that the core CPI had not risen in any two-month period. Core inflation has slowed sharply so far this year, advancing at just a 0.6 percent annual rate after increasing 1.9 percent last year.

In the 12 months ended in April, the core CPI was up just 1.5 percent, its smallest 12-month advance since March 1966.

The Federal Reserve warned after a meeting last week that the economy faced a small risk of an "unwelcome substantial fall in inflation." Analysts had said any further sharp slowing would likely raise the odds the central bank would lower interest rates again to ward off any chance prices would fall for a sustained period.

Energy prices, which had risen sharply for three straight months, slid 4.6 percent in April, the biggest decline since November 2001. The price of gasoline fell 8.3 percent and fuel oil costs plummeted 14.9 percent, the sharpest drop since February 1990.

The tumble in energy prices reflected the drop in the cost of oil since late-February highs as concerns eased over the possibility of a war-related disruption in supplies.

Did you enjoy this article? Click here to subscribe to i Cleaning Specialist Magazine.

You must login or register in order to post a comment.



Image Galleries

The 2013 Experience Convention & Trade Show

A look back in photos at the 2013 Experience Convention & Trade Show in Las Vegas.


ICS Cleaning Specialist Magazine


2014 April

Take a look at the April 2014 issue with features on air movers, going green, carpet cleaning and new products & technologies.

Table Of Contents Subscribe

Social Media

Social media is a good way to regularly keep in touch and interact with current clients and reach potential ones. What social mediums do you use in your cleaning/restoration business?
View Results Poll Archive


Get Paid! book cover
Get Paid! (ebook)
Over 30 authors – over 40 articles…from attorneys, contractors, consultants, instructors and others, both inside and outside the restoration industry. R & R, C & R and Cleanfax, opened their archives and gave us the best they had, other chapters were created just for the “Get Paid!” book and its readers. And every one of them has ideas for how to get paid what you are owed.

More Products


Director_Buyer.jpgThe premier resource and reference guide for the cleaning and restoration industries.

Click here to view


Truckmount.jpgEquipment listings and specifications from the leading industry manufacturers.

Click here to view


facebook_40.png twitter_40px.png youtube_40px.pngcrc logo