skip to main content

US inflation drops on lower fuel costs

Americans paid less for cars and fuel
Americans paid less for cars and fuel

US consumer prices fell in October for the first time in four months as Americans paid less for new cars and petrol, although prices outside of food and energy posted a slight increase, the US Labor Department has said.

The Consumer Price Index dropped 0.1% during the month.

Economists had expected the index of total prices would be flat last month after rising 0.3% in September.

Food prices rose 0.1%, while petrol fell 3.1%. Outside food and energy, prices climbed 0.1% in October, the same pace registered in September.

The so-called core index rose because higher prices on services and for clothes outweighed a 0.3% decline in new vehicle prices. Shelter costs rose 0.2%, while clothes increased 0.4%.

In the 12 months to October, consumer prices rose 3.5% after rising 3.9% in the full year to September.

Core prices rose 2.1% in the 12 months to October, up from 2.0% in September.