Inflation continues to run at a very low pace. In fact, the Labor Department said yesterday that its consumer-price index fell 0.2 percent between September and August. Core CPI, which strips out volatile food and energy prices, rose by 0.2 percent in September.
The price of gasoline fell by 9 percent in the month of September alone. The biggest price gainer over the month was shelter costs, which were up by 3.2 percent. The cost of food rose by 4 percent.
In fact, because overall inflation in the third quarter was so weak, Social Security recipients won’t get a cost-of-living adjustment next year. That's only the third time that has happened in the past 40 years.