In April, prices were down .7% from the prior year, according to the Consumer Price Index report. This was slightly more than the .4% drop in March, which was the first year-over-year decline since 1955.  The drop was due to a 25% decline in energy prices, which also caused a 13% decline in transportation costs.  Food and medical costs were up 3% since last year.

What It Means to You

A recession normally causes a decrease in all consumer goods, as manufacturers lower prices to increase demand. However, food and health care are necessities, and so consumers will buy them even if prices rise somewhat.  Use the tips from About.com guides to creatively cut your costs.

Best Moves Now

• Cut Your Entertainment Budget
• Grocery Stores That Double Coupons
• Grocery Savings - Local Supermarket Flyers