The decline in fuel prices had a big impact on...

The decline in fuel prices had a big impact on April's CPI numbers.  Credit: Getty Images/Rob Carr

Consumer prices in the metropolitan area increased in April by the smallest rate, year over year, since 2016 because of a big drop in the cost of gasoline due to the coronavirus.

The federal Bureau of Labor Statistics said Tuesday its consumer price index for the 25-county region that includes Long Island rose 1.1% last month compared with April 2019.

That’s the smallest annual  rise in the index since September 2016’s 1% increase, said Martin Kohli, chief regional economist. As recently as January, the index climbed 2.5% annually.

Gasoline prices dropped 20.4% in April compared with a year ago as motorists were ordered to stay home to slow the virus’ spread. Automobile insurance fell 9.7%.

The cost of electricity declined 0.9%, year over year, while natural gas was up 0.6%.

Grocery prices rose 4.8% last month compared with April 2019.

The cost of housing increased but at a slower rate than in recent months. Residential rent rose 2.1% last month compared with April 2019.

Medical prices climbed 5.3%, year over year, while the cost of daycare, school tuition and textbooks was up 4.3%.

Clothing prices continued to fall, dropping 3.1% in April compared with a year ago.

Nationally, the price index rose 0.3% last month compared with April 2019, the smallest annual change since October 2015.

The cost of gasoline fell 32%, year over year, while grocery prices rose 4.1%.

"We are seeing sharp declines in the price of items that people are not buying, while the prices of many of the items people are buying are rising rapidly," said economist Dean Baker at the Center for Economic and Policy Research, a Washington think tank.

Curt Long, chief economist at the National Association of Federally-Insured Credit Unions, agreed, adding, “Official rates of inflation will continue to drop due to collapsing demand, but the true impact on household finances is more ambiguous.”

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