• Lower energy prices lead the decline.

• Food prices jump with increased at-home consumption.

• Core goods prices broadly weaken.

The CPI fell 0.8% (+0.3%) during April, the largest decline since late-2008. The fall was double the prior month's decline. Expectations had been for a 0.7% decline in the Action Economics Forecast Survey. The CPI excluding food & energy weakened 0.4% (+1.4% y/y) last month after a 0.1% slip. The decline was a record and double the expected increase.

Lower energy prices pulled the CPI down with a 10.1% drop (-17.7% y/y), the largest of four consecutive monthly declines. Gasoline prices dropped 20.6% (-32.0% y/y), double the prior month's decline. Fuel oil prices fell 15.6% (-33.2% y/y) to the lowest price since early-2016. Natural gas prices rose 0.2% (-1.9% y/y) following two months of sharp decline while the cost of electricity edged 0.1% higher (0.2% y/y).

Food prices increased 1.5% in April (3.5% y/y), strengthened by a 2.6% rise (4.1% y/y) in the cost of food for at-home consumption. Prices for food purchased for consumption outside the home edged 0.1% higher (NSA, +2.8% y/y). Egg prices surged 16.1% (17.3% y/y) while meat, poultry & fish prices increased 3.6% (6.2% y/y). Cereal & bakery prices jumped 2.9% (3.1% y/y). Nonalcoholic beverage prices also strengthened 2.9% (5.0% y/y). Fruit & vegetable prices improved 1.5% (0.4% y/y) and dairy prices also increased 1.5% (5.2% y/y).

Goods prices excluding food & energy weakened 0.7% last month (-0.9% y/y) after weakening 0.3%. The decline was led by a 4.7% fall (-5.7% y/y) in apparel prices. Recreation goods prices declined 0.9% (-2.0% y/y) and prices for medical care goods eased 0.1% (+0.7% y/y). New vehicle prices were little-changed (-0.6% y/y) and used car & truck prices fell 0.4% (-0.7% y/y). Moving higher were appliance prices which jumped 1.1% (0.6% y/y) while household furnishings prices improved 0.6% (-0.4% y/y). Prices for education & communication goods rose 0.2% (-3.8% y/y).

Services prices weakened 0.4% in April (+2.2% y/y), a huge decline which was the largest since July 1980. It was paced by a 9.4% drop (-16.0% y/y) in the cost of public transportation. Recreation services prices rose 0.2% (2.4% y/y). Medical care service prices improved 0.5% (5.8% y/y) for a second straight month. Education & tuition prices edged 0.1% higher (2.1% y/y) for a third straight month. Shelter costs held steady (2.6% y/y) for a second month but the owners' equivalent rent of primary residences gained 0.2% (3.1% y/y).

The Consumer Price Index data can be found in Haver's USECON database with additional detail in CPIDATA. The Action Economics survey figure is in the AS1REPNA database.