the CPI falls (-1.0%) in october, yet another series record in a metric dating back to 1947, per bloomberg
``We are seeing the fallout of global recession on inflation,'' said Nigel Gault, chief U.S. economist at IHS Global Insight in Lexington, Massachusetts. ``In commodity prices, it's leading to deflation.''
A Labor report yesterday showed wholesale prices fell 2.8 percent last month, the most on record. Last week, the government also said the cost of imported goods declined by the most ever.
Food prices, which account for about a fifth of the CPI, increased 0.3 percent after a 0.6 percent increase in September.
The drop in core prices reflected declines in the cost of clothing, automobiles, air fares and hotel rates. New-vehicle prices fell 0.5 percent and clothing costs dropped 1 percent. The price of airfares plunged 4.8 percent, the most since June 1999.
The cost of all services, excluding fuel, was unchanged, the first time it hadn't increased since 1982.
Labels: economics, markets