(MENAFN- Saudi Press Agency) U.S. consumer prices recorded their biggest decline in almost six years in November as gasoline costs plunged, the government reported Wednesday.
The Labor Department said its consumer price index (CPI) fell 0.3 percent last month, the biggest drop since December 2008. Prices were flat in October.
Gasoline prices tumbled 10.5 percent in November, the sharpest drop in nearly six years. Average gasoline prices have fallen to $2.53 a gallon (3.8 liters) from $2.89 a month ago and $3.23 a year ago. Cheaper fuel frees up money to be spent elsewhere, often helping to support other sectors of the economy.
But consumer prices did rise last month for medical care, airline fares, and meat. Prices fell for clothing, household furnishings, and autos.
In the 12 months ending in November, the CPI increased 1.3 percent, the smallest gain since February, and well below the Federal Reserve (Fed) 2 percent target.
Excluding volatile energy and food prices, the so-called core CPI rose 0.1 percent in November after increasing 0.2 percent the previous month. Over the past 12 months, core CPI rose 1.7 percent, also below the Fed target.
With both 12-month inflation gains below the Fed target, central-bank policymakers have significant leeway to keep a key interest rate at near zero, which helps provide capital into the economy to spark growth and hiring.
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