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U.S. Consumer Prices Drop for First Time in a Year

The cost of living in the U.S. unexpectedly dropped in August for the first time in more than a year, giving Federal Reserve policy makers reason to maintain that interest rates should remain low for longer.

The consumer-price index declined 0.2 percent, the first decrease since April 2013, a Labor Department report showed today in Washington. Excluding volatile food and fuel, the so-called core measure was unchanged, the first time it failed to increase in almost four years.