Gas Prices Fall Harder Than In Past 56 Years

Bush's fault?

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.

If the CPI fell so much, think we may skip this month's regularly-scheduled interest-rate hike?*

* Or are the two only tangentially related? I know there's some relationship, though I'm not an economist. I don't do this for a living.

posted by Ace at 10:36 AM

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