Inflation Modest in October

Washington, DC, Nov. 16, 2011 -- The cost of living fell in October, mainly because of lower prices for gasoline, fruits and vegetables, the Labor Department reported.

The consumer price index dropped by a seasonally adjusted 0.1% last month. The decline reduced the 12-month increase in consumer prices to 3.5% from 3.9% in September.

The core rate of inflation, meanwhile, rose 0.1% for the second straight month, but it marked the lowest back-to-back increases of 2011. The core rate has risen 2.1% over the past 12 months, up from 2.0% in September.