Consumer prices flat in April, matches estimates

WASHINGTON (AP) — Consumer prices were unchanged in April as both food and energy costs declined to offset gains elsewhere.

Prices over the past year fell by the largest amount in more than a half-century, the government said today.

The disappearance of inflation has been a product of the country’s deep recession as surging job layoffs dampen wage pressures and weak consumer demand keeps a lid on price increases.

Some economists are worried about a dangerous bout of falling prices, but most say that possibility remains remote because the Federal Reserve has responded with force to combat the current downturn.