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| US consumer prices fall in March | US consumer prices fall in March |
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| US consumer prices fell in March and recorded their first annual drop in more than half a century, official figures have shown. | US consumer prices fell in March and recorded their first annual drop in more than half a century, official figures have shown. |
| The consumer price index fell 0.1% last month after energy prices declined. In February prices had risen 0.4%. | The consumer price index fell 0.1% last month after energy prices declined. In February prices had risen 0.4%. |
| The fall in the cost of living had not been expected. Analysts had expected prices to rise by 0.1%. | The fall in the cost of living had not been expected. Analysts had expected prices to rise by 0.1%. |
| March's fall meant consumer prices were down 0.4% from a year ago, the first annual decline since 1955. | March's fall meant consumer prices were down 0.4% from a year ago, the first annual decline since 1955. |
| "The numbers speak to an economy that is in deep recession, but we're no longer in the shock mode of staggering numbers," said Peter Kenny, managing director at Knight Equity Markets. | |
| CHANGE IN US PRICES (CHANGE IN MARCH) Energy -0.3%Food -0.1%Clothing -0.2%Transport -1.1%Medical care +0.2% Source: US Labor Department | |
| The US Labor Department said that the cost of energy decreased, particularly fuel oil, natural gas and motor fuel. Food prices also declined. | |
| Some economists have expressed fears the recession could trigger a prolonged period of falling prices, known as deflation. | |
| This can undermine consumer spending and corporate profits, making a recession even worse. | |
| But others worry that the measures the US government and Federal Reserve have taken to fight the financial crisis could lead to soaring inflation in the long term. |