Cost of Living on its way down

Bloomberg: The cost of living in the U.S. fell in November by the most on record as gasoline and other energy prices plunged. Consumer prices dropped 1.7 percent last month, more than economists had forecast, a Labor Department report showed today in Washington. Excluding food and energy, so-called core prices were unchanged from a month earlier.

Costs of oil and other raw materials plummeted last month as a credit crisis intensified, forcing consumers to slash spending and prompting U.S. automakers to ask for a federal rescue package. Tumbling sales have retailers cutting prices, bolstering economists’ expectations the Federal Reserve later today will cut its target rate to the lowest level ever.


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