Consumer Prices Fall, "Unexpectedly"

I'm expecting Krugman to comment on this as soon as he has finished his grading.  He's been talking about the risk of deflation being far more likely than the risk of inflation in the mid/short run.  Plus, he's also been railing against the 'fear inflation' crowd.  So, I have to believe that this news will make his blog.

May 19 (Bloomberg) -- The cost of living in the U.S. unexpectedly dropped in April for the first time in more than a year, reinforcing forecasts that the Federal Reserve will keep interest rates near zero for much of 2010.

The 0.1 percent fall in the consumer price index was the first decrease since March 2009, figures from the Labor Department showed today in Washington. Excluding food and fuel, the so-called core rate was unchanged, capping the smallest 12- month gain in four decades.

As a side note, I don't think this he will see this as good news either.  It points to high joblessness acting as a dampening pressure on the overall economy.

UPDATE: Just to toot my own horn, I posted this (above) around 1:00 PM ET.  Krugman posted this at 1:51 PM ET.  Nailed it.