Core Consumer Prices Fell in January

Washington, DC, Feb. 19, 2010--Falling housing prices were a significant factor in a drop of 0.1% in core consumer prices in January.

It was the first decline since 1982, the Labor Department said Friday.

Core prices, which exclude food and energy costs, are considered a good indicator of underlying inflationary pressures.

Prices fell for hotel fares, home ownership costs, new cars, airfares and clothing.

Overall, the consumer price index rose a seasonally adjusted 0.2% in January for the fifth straight month. Higher energy and medical costs more than offset the largest decline in services prices since 1982.

Inflation was weaker than expected by economists, who were forecasting a 0.3% increase in the overall CPI and a 0.1% gain in the core CPI.