U.S. Inflation Fell 0.8% In April, Largest Drop Since 2008

Summary

  • Gasoline prices fell a remarkable 20.6% in April, setting off a deflationary surge across the economy.
  • Core inflation fell to 1.4% year over year, breaking a 27-month streak of rates at or above 2.0%.
  • Inflation-protected investments, especially TIPS, will suffer in this deflationary period.

In a stunning reflection of the current U.S. economy, the Bureau of Labor Statistics reported today that U.S. inflation fell 0.8% in April, the largest drop since December 2008, at the opening of the Great Recession. Year-over-year U.S. inflation has now plummeted to just 0.3%, down from 2.5% at the beginning of the year.

Read my full analysis on SeekingAlpha.com

12 month inflation trend

About Tipswatch

Author of Tipswatch.com blog, David Enna is a long-time journalist based in Charlotte, N.C. A past winner of two Society of American Business Editors and Writers awards, he has written on real estate and home finance, and was a founding editor of The Charlotte Observer's website.
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