Led down by lower energy prices, overall U.S. consumer prices fell a seasonally adjusted 0.1% in March, matching analysts' expectations, the Labor Department reported Wednesday. Energy prices decreased 3% in March, with declines in fuel oil, gasoline and natural gas. Meanwhile, food prices fell 0.1%. The core CPI, which excludes food and energy prices, rose 0.2% for the third consecutive month, boosted by higher prices for tobacco and smoking products, and new vehicles. The higher tobacco prices are tied to a tax hike that pays for expanding health insurance for children. Economists polled by MarketWatch had expected the core to gain 0.1%. Over 12 months, the CPI is down 0.4% -- the first annual decline since 1955 -- and the core is up 1.8%. In February, the overall CPI rose 0.4%, while the core gained 0.2%. In a separate report, the Labor Department said real average weekly earnings in March were close to unchanged, as a 0.3% decrease in hours was offset by a 0.2% gain in earnings and a lower CPI. Details Shelter prices in March were unchanged. Rent and owners' equivalent rent each increased 0.2%. Medical care prices rose 0.2%, including a 0.6% gain in hospital and related services prices. Apparel prices fell 0.2%. Transportation prices decreased 1.1%. On Tuesday, the government reported that prices at the wholesale level fell more sharply than expected in March amid energy price declines, reviving deflation fears. Over 12 months, the PPI was down 3.5% -- the largest 12-month decline since a drop of 3.9% in 1950.

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