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Wednesday, November 19, 2008

CPI: Largest Drop in 61 Years "Fueled" by Fuel

Per the AP:

Consumer prices plunged by the largest amount in the past 61 years in October as gasoline pump prices dropped by a record amount.

The Labor Department said Wednesday that consumer prices fell by 1 percent last month, the biggest one-month decline on records that go back to February 1947. The drop was twice as large as the 0.5 percent decline analysts expected.

The quick reversal in CPI was almost exclusively "fueled" by fuel. It will be interesting to see how other prices react to the slowing economy and crushed consumer demand.