Washington, April 15 - Consumer inflation fell by 0.1% in March as falling food, energy and transportation costs more than offset gains in other goods and services, the Labor Department said today. Economists were expecting headline CPI to rise by 0.1%.

Core CPI, which excludes food and energy, rose 0.2%, more than the 0.1% economists were expecting.

Overall inflation is down an unadjusted 0.4% in the 12 months ending in March, the first year over year decline since August 1955 when it fell by the same amount. Core inflation has risen 1.8% over the last twelve months, the same year over year gain as reported in February.

On a seasonally adjusted basis, both overall inflation and core inflation rose at a 2.2% annualized pace over the past three months.

Energy prices fell 3.0% in March after two consecutive months of gains. March gas prices fell 4.0%, and fuel oil prices fell 8.5%.

Energy prices are now down an unadjusted 23.0% over the last 12 months.

Food prices fell 0.1% in march, but are still up an unadjusted 4.4% over the last twelve months.

Real average weekly earnings were unchanged in March, while average hourly earnings, which are not adjusted for inflation, rose 0.2% in the month.

tessa.moran@thomsonreuters.com /wash

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