The Consumer Price Index for All Urban Consumers (CPI-U) plummeted 0.8% in April, marking the largest monthly drop since December 2008, reported the US Bureau of Labor Statistics. This percentage is on a seasonally adjusted basis.
The all items index has risen 0.3% before seasonal adjustment, over the past year.
One-month percent change in CPI for All Urban Consumers (CPI-U), seasonally adjusted, Apr. 2019 – Apr. 2020 (Source: Bureau of Labor Statistics)
Energy
The index for energy plunged 10.1% in April, marking the largest monthly decline in the index since November 2008, stated the Bureau of Labor Statistics. Gas prices dropped a staggering 20.6% in April, and since December of last year have decreased 32.5%. Likewise, for the month of April, the fuel oil index also dropped 15.6%. Conversely, both indexes for electricity and natural gas rose 0.1% and 0.2%, respectively.
Over the last 12-month period, overall the energy index declined 17.7%, which was the largest percentage drop for the index since September 2015. In the last 12 months, the index for gasoline plummeted 32%, and the fuel oil index likewise plummeted 33.2%.
Food Index
In April, the food index rose 1.5%. Specifically, the food at home index leapt 2.6%. The Bureau of Labor Statistics reported that marked the largest monthly increase for this index since February 1974. The food away from home index also increased slightly by 0.1%.
Over the last year, the index for food at home has risen 4.1%. Additionally, the food away from home index has also risen 2.8% over a 12-month period.
(Source: Bureau of Labor Statistics)
All Items Less Food and Energy Index
In April, all items less food and energy index for dropped 0.4%. The Bureau of Labor Statistics reported that this was the largest monthly decline since 1957 when records commenced being kept.
Over the 12-month period, the index for all items less food and energy increased 1.4%. The index for shelter increased 2.6% over the last year, as did the rent index to 3.5%.
The Bureau of Labor Statistics released a statement regarding CPI data for April 2020:
“Data collection by personal visit for the Consumer Price Index (CPI) program has been suspended since March 16, 2020. When possible, data normally collected by personal visit were collected either online or by phone. Additionally, data collection in April was affected by the temporary closing or limited operations of certain types of establishments. These factors resulted in an increase in the number of prices considered temporarily unavailable and imputed. While the CPI program attempted to collect as much data as possible, many indexes are based on smaller amounts of collected prices than usual, and a small number of indexes that are normally published were not published this month.”
Source cited: https://www.bls.gov/news.release/archives/cpi_05122020.htm
Sarah has been writing on the topics of politics, history and finance for over a decade. She is currently an editor at CPI Inflation Calculator, covering the topics of CPI, inflation, US economy and economic commentary.
