Snappy newsletters. Simple Facebook sharing. Spirited comments. Sweet features are waiting… GET THEM NOW!

Consumer Prices Dive 1%, Biggest Drop in 61 Years

Oil's record decline leads to 1% overall drop

By the Associated Press

Posted Nov 19, 2008 9:07 AM CST

(AP) – Consumer prices in the United States plunged by the largest amount in the past 61 years in October as gasoline prices dropped by a record amount. The Labor Department said today that consumer prices fell by 1% 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% decline analysts expected.

The big drop in inflation reflected not only a huge fall in gasoline and other energy costs, but widespread declines in other areas. Core consumer prices, which exclude food and energy, fell by 0.1% last month, the first drop in core prices in more than a quarter-century. Analysts predicted further declines in the months ahead. "This report clearly reflects the crunch in discretionary consumers' spending which is likely to persist for the foreseeable future," said one economist.

A customer shops at a Wal-Mart in San Jose, Calif., Wednesday, Aug. 13, 2008. (AP Photo/Paul Sakuma)

A worker lowers the price of regular unleaded gasoline to $1.46 per gallon at a Quik Trip store in Independence, Mo. Tuesday, Nov. 18, 2008. (AP Photo/Charlie Riedel)

A shopper carries a Marks & Spencer bag in Oxford Street in London, Tuesday, Nov. 4, 2008. (AP Photo/Kirsty Wigglesworth)

« Prev« Prev | Next »Next » Slideshow

To report an error on this story, notify our editors.

More Newser Stories

Consumer Confidence Soars

It neared its post-recession peak this month

(NEWSER) - Are American shoppers at last stepping back from the ledge? The Conference Board's Consumer Confidence Index shot up 10 points in December to 64.5, the AP reports. That's its highest reading since April and closing in on its post-recession peak of 72, which was achieved in February. Consumers were somewhat more upbeat in their view of the economy, with that metric bumping from 38.3 to 46.7, and significantly more upbeat about their own prospects for the next six months, which rose from 66.4 to 76.4. More»

Consumer Spending Weakest in 20 Months

May showed first decline since January 2010

(AP) - Americans spent in May at the weakest pace in 20 months, a sign that high gas prices and unemployment are holding back the economy. Consumer spending was unchanged, the worst result since September 2009, the Commerce Department said today. When adjusted for inflation, spending actually dropped 0.1%—the first decline in inflation-adjusted spending since January 2010. More»

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

(NEWSER) - Consumer spending rose at its fastest rate in four months in February—but that’s in large part due to rising gas prices. Consumer spending climbed 0.7%, while personal income rose 0.3% following January’s 1.2% jump, the AP notes. Both gains reflected a Social Security tax cut, which boosted take-home pay. But if energy prices keep climbing, household budgets will fall, and so will spending, economists say. More»

Fed: We Could Help Economy...

...But we won't just yet

(NEWSER) - The Federal Reserve yesterday reassured the public that it was “prepared to provide additional accommodation if needed” to support the recovery, but that it didn’t think it was needed just yet. But merely suggesting the possibility was enough to send markets in the right direction, with interest on Treasury bonds falling, in theory making mortgages and other long-term loans cheaper, the Washington Post reports. More»

America's 40% Overpriced

Take in some discount movies, you'll understand

(NEWSER) - Joe Queenan has figured out the real problem with the US economy: It's overpriced. Queenan came to this revelation after he and his buddies made a habit of going to see movies on Tuesday nights, when they only cost $6 instead of $10.25. At that price, even bombs like The Losers and Repo Men look good. Now, suddenly, he's not willing to pay more than 60% of the asking price for anything. More»

NEWS FROM OUR PARTNERS

What is Newser?

Face it: there's too much news. At Newser, we choose the most thought-provoking and entertaining stories from hundreds of US and international sources and reduce them to a headline, picture, and two paragraphs. And we do it 24/7—you can come back morning, noon, night (and in between) for something new that matters. Read less, know more.

Learn more »

Partnering with: Slate

View Newser on the mobile website

Consumer Prices Dive 1%, Biggest Drop in 61 Years

Oil's record decline leads to 1% overall drop

OTHER STORIES ON OUR RADAR

economic indicators • core inflation • gas prices • consumer prices • economy

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Consumer Confidence Soars

It neared its post-recession peak this month

Consumer Spending Weakest in 20 Months

May showed first decline since January 2010

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Fed: We Could Help Economy...

...But we won't just yet

America's 40% Overpriced

Take in some discount movies, you'll understand

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?

Consumer Prices Dive 1%, Biggest Drop in 61 Years

Oil's record decline leads to 1% overall drop

Bookmark & Share

OTHER STORIES ON OUR RADAR

economic indicators • core inflation • gas prices • consumer prices • economy

MOST POPULAR STORIES

[ By Views ]

[ By Comments ]

More Newser Stories

Consumer Confidence Soars

It neared its post-recession peak this month

Consumer Spending Weakest in 20 Months

May showed first decline since January 2010

Consumer Spending Up... Thanks to Gas Prices

Personal income up 0.3%, but inflation hits hard

Fed: We Could Help Economy...

...But we won't just yet

America's 40% Overpriced

Take in some discount movies, you'll understand

About Us

Site

Newser By Users

Community

Site Maps

Tools

More News

What is Newser?