U.S. core consumer prices drop for first time in 27 years

Those concerned that the ultra-cheap money brought about by rock-bottom rates at the Fed could lead to rampant inflation can hyperventilate a little less after today's report that core consumer prices actually dropped for the first time in 27 years in January, down 0.1%.

After including fuel and food, which are more erratic, the U.S. Dept. of Labor's Consumer Price Index (CPI) for All Urban Consumers still went up only a modest seasonally-adjusted 0.2%. This translates into a yearly rate of 2.6%, not adjusted for seasonality.