WASHINGTON, Dec 14: The US consumer prices fell in November due to a sharp drop in gasoline prices at the pump, the government said on Friday.

The consumer price index fell 0.3pc from October, the first decline in CPI since May, the Labour Department said A steep 7.4pc decline in the gasoline index more than offset increases in all the other indexes, the department said.

Overall energy prices fell 4.1 per cent, despite rises in prices for natural gas and electricity. The energy index, though volatile on a monthly basis, showed only a modest 0.3pc rise from November 2011. Food prices meanwhile rose 0.2pc from October. Excluding food and energy prices, core CPI edged up 0.1 per cent following a 0.2pc increase in October.

The data underscored the tame inflationary pressures in the weak economy that is still struggling to recover from the severe 2008-2009 recession; year-over-year, the CPI rose 1.8 per cent in November, slowing from a 2.2 per cent rise the prior month. Core CPI edged down to 1.9 per cent.

The Federal Reserve this week said it would keep its benchmark interest rate at 0-0.25pc, where it has been for the past four years to support the recovery, as long as the unemployment rate is above 6.5 per cent and the inflation outlook is below 2.5pc.—AFP