Energy prices sank 8.6 percent last month as consumers saw relief at the gas pump. Marylanders are paying just under $2 a gallon today after paying more than $4 a gallon at the peak of the market last summer.
Consumers are also paying 5.4 percent less for transportation and 1 percent less for apparel as retailers began slashing prices for the holiday season earlier than usual.
Food and beverage prices overall rose 0.3 percent last month, half of the increase in September. But items such as fruits and vegetables declined 2.2 percent in October, and dairy products fell 1 percent.
Still, some businesses have yet to experience the benefits of recent price declines. For the past 12 months, consumer prices overall are up 3.7 percent, while food and beverage prices are up 6.1 percent.
"The irony is that even though fuel prices are coming down, electricity and fuel charges are still going up," said Chris Maler, co-owner of Matthew's Pizza in Baltimore.
Maler said he has asked his trash and waste management vendors to lower or eliminate fuel surcharges as gasoline prices have plummeted. So far, he has not received a response.
Moreover, Maler said he's paying more for flour and cheese since the beginning of the year, though prices recently declined slightly or flattened. It costs more than $5 for a pound of cheese, compared with $3.47 at the beginning of the year. And Maler pays about $20 for 50 pounds of flour, up from $18 but down from a peak of $29.
After trying to keep from passing cost increases on to customers, Maler raised prices on pizza and salad items in October.
"If the economy stays in this situation, there is a thought of increasing prices at the first of the year, which we don't want to do," Maler said. "We've been here 65 years, and we have a following and we want to continue to provide quality and service at a value to our customers."
Last month's falling consumer prices reflected deep discounts among retailers, who are fighting for cash-strapped consumers. They are pushing holiday promotions earlier than ever in what is expected to be a bleak season.
Retailers are expected to cut prices more to lure shoppers, but economists worry that consumers will hold off on making purchases to wait for further price drops, eroding demand even more.
