Economy

April consumer prices post the largest drop since 2008

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Key Points
  • U.S. consumer prices in April dropped by the most since the Great Recession.
  • Prices were weighed down by a plunge in demand for gasoline and services, including airline travel, as people stayed home during the coronavirus crisis.
A Shell gas station is seen with a sign displaying gas for $ 0.99 per gallon on April 24, 2020 in Southgate, Michigan.
Gregory Shamus | Getty Images

U.S. consumer prices in April dropped by the most since the Great Recession, weighed down by a plunge in demand for gasoline and services, including airline travel, as people stayed home during the coronavirus crisis.

The Labor Department said on Tuesday its consumer price index tumbled 0.8% last month after falling 0.4% last in March. That was the largest decline since December 2008, and marked the second straight monthly decrease in the CPI.

In the 12 months through April, the CPI gained 0.3% after increasing 1.5% in March. Economists polled by Reuters had forecast the CPI falling 0.8% in April and rising 0.4% year-on-year.