Consumer prices in the United States dropped more than forecasts in April on lower demand for goods and services due the outbreak of Covid-19, Labor Department data showed on Tuesday.
The consumer price index (CPI) saw a 0.8 percent fall in April on cheaper energy prices, following a 0.4 percent drop in March, while analysts had predicted a 0.7 percent plunge. The year-on-year reading decelerated sharply to 0.3 percent, the lowest level in five years, from a previous of 1.5 percent.
Core CPI- excluding volatile food and energy prices- showed a 0.4 percent slide, compared to March’s reading of -0.2 percent, while the annual reading slipped to 1.4 percent from 2.1 percent.
It seems that the lower demand on some goods and services outweighed a price soars associated with supply disruptions after the spread of the coronavirus.
Meanwhile, there are 1,385,893 coronavirus infected cases, while the deaths toll reached 81,796, noting that most states were reopened on Sunday.
The dollar index
traded lower at 99.82, compared to the session’s open at 100.25.