Consumer prices here edge up

Consumer prices in the Philadelphia area rose 0.6 percent in the March-April period, the Bureau of Labor Statistics reported yesterday.

The increase was broad-based, reflecting higher prices in most major categories of goods and services. But even with the increase, prices over the last 12 months have fallen 0.9 percent, the biggest year-over-year drop in the area's consumer price index since November 1955, the BLS said.

The latest two-month increase compares with a rise of 1.0 percent in the January-February period.

For March and April, the largest gain in prices was 2.4 percent for apparel, especially for girls, infants, and toddlers. The cost of men's suits, sportcoats, and outerwear also rose.

The food and beverage category was up by 0.5 percent, as was medical care. Transportation costs increased by 0.9 percent, mostly because of higher prices for gasoline.

The only key category not to show an increase was education/communication, for which prices were unchanged.

The local area, as measured by the BLS, consists of the five counties in Southeastern Pennsylvania, most of southern New Jersey, New Castle County in Delaware, and Cecil County in Maryland. For this region, the BLS measures inflation every two months.

Nationally, it reports on consumer prices every month. In April, prices across the country were unchanged in April from March, the BLS said in yesterday's report.

The disappearance of inflation nationwide 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 economic downturn.

The docile inflation performance reflected a second monthly drop in energy costs and a third straight decline in food prices. Prices fell 0.1 percent in March.

Over the last year, U.S. consumer prices have fallen 0.7 percent, the largest 12-month decline since a similar drop for the 12 months ending in June 1955.

In a separate economic report yesterday, the Fed said output by the nation's factories, mines, and utilities fell 0.5 percent last month, after revised declines of 1.7 percent in March and 1 percent in February. Analysts expected a drop of 0.6 percent last month.

Still, the report showed U.S. industry remains weak. Industrial production has fallen in 15 of the 17 months since the recession began in late 2007 and is down 16 percent since then.