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Inflation falls as gas prices plummet

Julio Cortez, AP

The price of goods and services consumers buy fell 0.1% in October, driven by a 2.9% drop in the cost of gasoline, as the Labor Department said prices overall are continuing the slowest year-over-year rise since 2009.

The consumer price index report also said that the price of medical care was unchanged, Medical cost containment in recent years has been a key factor in bringing down overall price hikes, and letting policy makers use aggressive monetary policy to fight the after-effects of the recession and housing bust without sparking inflation.

The so-called core inflation rate, excluding food and energy prices, rose 0.1% in October, the government said. Over the last year, core prices have risen 1.7%, while prices overall have climbed just 1% because of energy-price declines.

Tim Mullaney

Source:USATODAY

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