Whoa!
Prices Drop by Largest Amount in 56 Years
MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON - A record plunge in the cost of gasoline pushed consumer prices down by the largest amount in 56 years in November while industrial production posted a solid gain.
The new government reports Thursday provided further evidence that the economy is shaking off the blows delivered by a string of devastating hurricanes.
The Labor Department reported that its closely watched Consumer Price Index dropped by 0.6 percent last month, the biggest decline since a 0.9 percent fall in July 1949. It reflected a record fall in gasoline prices, which have been retreating since they surged to above $3 per gallon right after Katrina hit.
Meanwhile, the Federal Reserve said output at the nation's factories, mines and utilities rose a solid 0.7 percent last month following a 1.3 percent rise in October. Industrial output had plunged by 1.6 percent in September, reflecting widespread shutdowns of oil refineries, chemical plants and other factories along the Gulf Coast.
Prices Drop by Largest Amount in 56 Years
MARTIN CRUTSINGER, AP Economics Writer
WASHINGTON - A record plunge in the cost of gasoline pushed consumer prices down by the largest amount in 56 years in November while industrial production posted a solid gain.
The new government reports Thursday provided further evidence that the economy is shaking off the blows delivered by a string of devastating hurricanes.
The Labor Department reported that its closely watched Consumer Price Index dropped by 0.6 percent last month, the biggest decline since a 0.9 percent fall in July 1949. It reflected a record fall in gasoline prices, which have been retreating since they surged to above $3 per gallon right after Katrina hit.
Meanwhile, the Federal Reserve said output at the nation's factories, mines and utilities rose a solid 0.7 percent last month following a 1.3 percent rise in October. Industrial output had plunged by 1.6 percent in September, reflecting widespread shutdowns of oil refineries, chemical plants and other factories along the Gulf Coast.