Consumer prices in the United States plunged 1.0 percent in October, the biggest one-month drop in 61 years, dragged by declining energy costs, the Labor Department reported Wednesday.
The October drop in overall prices was twice as large as the 0. 5 percent decline analysts expected.
Energy prices plunged by 8.6 percent last month, a drop much greater than the 1.9 percent fall in September, the report showed.
The cost of gasoline and other fuels dropped in October, reflecting big drops in crude oil prices.
The report also showed that "core" consumer prices, which exclude volatile energy and food costs, fell by 0.1 percent in October, after rising 0.1 percent rise in September.
Consumer prices measure inflation pressures at the retail level. Analysts believe the price moderation will give the Federal Reserve the room to cut interest rates to save the economy.
(Xinhua News Agency November 20, 2008)
