MW: Core inflation drops 0.1% on falling housing costs
By Rex Nutting
WASHINGTON (MarketWatch) - With shelter costs dropping sharply, U.S. core consumer prices fell a seasonally adjusted 0.1% in January, the first decline since 1982, the Labor Department estimated 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.
