Consumer Price Index drops from a year earlier. Is now a good time to buy new appliances?

The Consumer Price Index fell 0.7 percent in April from a year earlier, according to the latest figures from the U.S. Department of Labor's Bureau of Labor Statistics, and in March, the CPI dropped 0.4 percent year-over-year. These declines, says the BLS, are the first since 1955.

We're seeing a similar pricing trend for appliances. "Appliance manufacturers were planning in early 2008 to increase prices by 5 percent, mostly to pass on higher costs for commodities like energy and metals," says Michael DiLauro, a product-information specialist for Consumer Reports. "But since the financial crisis hit, we're seeing very few price increases."

So is now a good time to buy an appliance you've been coveting? As detailed in "Repair or Replace It?" (available to subscribers), if your appliance is eight or more years old, it often makes sense to buy a newer model. Federal, state, and utility company tax credits and rebates for energy-efficient appliances can provide further savings.

And when you're ready to shop, find the best stores to buy appliances.—Gian Trotta | e-mail | Twitter

Essential information: Find out how to maintain and extend the life of your appliances