October U.S. inflation rate sees biggest drop in 61 years

Tumbling gasoline costs sent consumer prices in the United States down in October by their largest one-month drop since February 1947, the U.S. government reported Wednesday.

Overall consumer prices fell by one per cent last month. Economists had been expecting a drop in inflation of 0.5 per cent.

Price drops were widespread, with the so-called core inflation rate, which factors out food and energy, dropping by 0.1 per cent last month. That was the first retreat in the core rate in more than 25 years.

The lower gasoline prices are also showing up in Canada, where pump prices across the country were averaging 88.7 cents a litre, down from more than $1.09 a litre a month ago, according to the website gasbuddy.com. October consumer price inflation data for Canada will be released on Friday.