US consumer prices fell in October as energy costs posted their biggest decline in more than 15 years, the government said today in a report suggesting inflation is dormant in the weak economy.
The Consumer Price Index (CPI), a closely watched gauge of inflation, declined 0.3 per cent last month following a 0.4 per cent gain in September, the Labor Department said.
Excluding the more volatile food and energy prices, the so-called core CPI rose 0.2 per cent for the fourth straight month in October.
The data was fairly close to estimates from Wall Street economists who on average figured the overall CPI fell 0.2 in October while the core inched up 0.1 per cent, according to a Reuterspoll.
