Consumer Price Index Plunges in November

rices paid by consumers fell 0.6% in November, the Labor Department said Thursday, the biggest drop in 56 years.

The drop was led by a record drop in energy prices. The so-called “core” consumer price index, which excludes food and energy, rose 0.2%, Labor said.

The drop followed a 0.2% rise in October. Core prices were up 2.1% in the 12 months ended in November, matching October’s gain.

The CPI decline was greater than analysts’ expectations of a 0.4% drop, while the core rate matched expectations, Bloomberg reported.

The CPI is the government's broadest gauge of costs for goods and services. Almost 60% of the CPI covers prices consumers pay for services. If consumer prices are falling, it could reflect a decrease in demand for consumer goods, which decreases the demand for trucking services.