Money | economic indicators Consumer Prices Dive 1%, Biggest Drop in 61 Years Oil's record decline leads to 1% overall drop By Newser Editors and Wire Services Posted Nov 19, 2008 9:07 AM CST Copied A customer shops at a Wal-Mart in San Jose, Calif., Wednesday, Aug. 13, 2008. (AP Photo/Paul Sakuma) 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. Read These Next JD Vance can't possibly be happy about how this interview went. Pedophile rock star killed by fellow inmates. In speech to Knesset, Trump ad-libs a pardon request. This is what happens when you lose control of a plane refueling hose. Report an error