Inflation Stayed Level in SeptemberThere was low gasoline inflation in September, in which the average price of unleaded fell slightly, and consequently top-line CPI inflation was on the low side. The top-line CPI measure increased by 0.2% from August to September, and thanks to the gasoline price deflation at the end of 2008, it is still 1.3% below its September 2008 level. Of the noncore components of inflation, energy prices overall increased by only 0.6% in September, down from an increase of 4.6% in August, while food and beverage prices resumed their decline, falling by 0.1% in September and now level with their value one year ago. Though top-line inflation remains relatively volatile, it has averaged little more than 0.2% per month for all of 2009. This means that all of the Fed's aggressive expansion of credit to banks has had almost no effect on consumer prices so far....
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