Low petrol prices drag CPI down in January

Washington

US consumer prices in January posted their biggest drop since 2008 as petrol prices continued to tumble, which could give a cautious Federal Reserve ammunition to keep interest rates low a bit longer.

The Labour Department said its Consumer Price Index fell 0.7 per cent last month, the largest decline since December 2008, after slipping 0.3 per cent in December. It was the third straight month of decline in the index.