US consumer prices fall by record one percent

November 19th, 2008 - 10:29 pm ICT by IANS  

Washington, Nov 19 (DPA) In a continuing signal of economic decline, US consumer prices fell one percent month-on-month in October, the largest one-month decrease since inflation figures started being published in 1947, the US government said Wednesday.The overall inflation index had remained flat through September after having its first decline in two years in August of 0.1 per cent.

The figures, which were seasonally adjusted, reflected an 8.6 percent drop in energy prices. Petrol prices were down more than 14 percent, the Bureau of Labour Statistics (BLS) said.

The escalation of food prices has slowed somewhat, to only 0.3 percent in October. Over the summer, food prices had been increasing an average of 0.7 percent a month.

Year-on-year, however, Americans are paying 6.3 percent more for food and 12 percent more for petrol than they were in October 2007. The overall inflation index was 3.7 percent higher than a year ago.

Core inflation, which does not include food or energy costs, declined 0.1 percent since September, and was up 2.2 percent above October 2007. The decline reflected dropping prices for clothing, airline fares, lodging and motor vehicles, the BLS said.

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