Consumer Prices Plummet on Lower Energy Costs

The U.S. Department of Labor Wednesday offered a rare bright spot in the run of terrible economic news: consumers paid less for just about everything in October.

Consumer prices overall – called the consumer price index (CPI) by Labor – declined 1 percent in October, the largest decline since the government began keeping records in 1947. Energy prices led the way with a massive 8.9 percent decline.

Food prices inched up 0.3 percent in the month.

The core CPI, which excludes food and energy prices due to their volatility, fell 0.1 percent. It was the first time the core CPI has declined since 1982. The core consumer price figure is the one watched closest by the Federal Reserve to monitor inflation.

Economists had expected a price correction, with a poll of MarketWatch economists anticipating a 0.9 percent decrease in the overall CPI and a 0.1 percent increase in the core figure.