Consumer prices flat in April

WASHINGTON -- A key consumer price gauge was unchanged in April as both food and energy costs declined to offset gains elsewhere, and prices over the past year fell by the largest amount in more than a half-century.

The Labor Department said Friday that its consumer price index was flat last month, meeting economists' expectations. The docile inflation performance reflected a second monthly drop in energy costs and a third straight decline in food prices.

Over the past year, consumer prices have fallen 0.7%, the largest 12-month decline since a similar drop for the 12 months ending in June 1957.

Core prices, which exclude food and energy items, rose a faster 0.3% vs. a 0.2% increase in March. That compared to analysts' prediction for a 0.1% increase. Core prices rose 1.9% year over year after a 1.8% rise in March.

Energy prices fell 2.4% after dropping 3.0% the previous month. The food index fell 0.2% in April, the largest drop since May 2002 and the third straight monthly decline.