FXStreet reports that Sal Guatieri from the Bank of Montreal (BMO) notes that consumer prices remained under heavy downward pressure in April as social distancing measures slashed demand and fuel costs.

“The CPI tumbled 0.8% in the month, led by a 20.6% plunge in gasoline costs, axing the yearly CPI rate to 0.3% from 1.5% in March.” 

“Core prices posted their largest monthly decline (-0.4%) on record (back to 1957) and the first back-to-back monthly decrease in over 37 years, carving the yearly core rate to 1.4% from 2.1%.”

“Even as the economy reopens, core inflation is likely headed below 1% in the coming year in the face of high unemployment and low commodity prices.”