Pace of inflation slows in October

Declining gasoline prices in October helped halt 10 straight months of increasing inflation in the metropolitan area.

The federal Bureau of Labor Statistics Wednesday reported the consumer price index rose 3.3 percent last month compared with a year earlier. But that was less than September's 3.8 percent gain year over year.

Compared with September, inflation dropped 0.2 percent last month in the 31-county region that includes Long Island. This month-over-month decline was the largest since December 2008.

Moderating gas prices helped to offset steep increases in the cost of clothing, medical care and housing, said Michael L. Dolfman, regional commissioner for the federal Department of Labor, which oversees the statistics bureau.

Outside the Pathmark supermarket in Franklin Square Wednesday, some customers said inflation had compelled them to change shopping routines.

"I shop at more places to take advantage of bargains," said Gretchen Weiss, 71, a retiree from Franklin Square. "I try to stretch every dollar because I only have Social Security."

Grocery prices increased 4.6 percent in October compared with a year earlier. They also gained 0.4 percent last month from September, due in part to the higher cost of tomatoes, salad dressing, sugar and artificial sweeteners.

Prices at the gas pump climbed 26.2 percent from a year ago but were down 4.3 percent from September. They've declined for five consecutive months.

Excluding food and energy, the regional price index rose 2.5 percent in the past year. Clothing prices soared 4.8 percent year over year, while medical care was up 3.4 percent.

Nationally, prices rose 3.5 percent in October from 2010, and 2.1 percent if food and energy are excluded. The latter measure, called core inflation, is a key number closely monitored by the Federal Reserve's interest-rate-setting committee.

Ryan Sweet, senior economist at the research firm Moody's Analytics, predicted the national inflation index would continue to fall, eventually reaching 2 percent gains by the middle of next year. "Some of this will be partly because retail energy prices are catching up to the previous drop in oil prices," he said. "Easing in other prices may be more gradual."

In the metropolitan area, the cost of electricity fell 7.1 percent last month from September, and the price of natural gas was down 2.7 percent.

Separately Wednesday, the state Department of Taxation and Finance released data for October about shopping activity on Long Island.

October sales tax receipts rose 8.3 percent in Nassau County from a year ago and 5.5 percent in Suffolk County. The gains are an improvement over past months.