U.S. consumer prices plunged in October as gasoline pump prices dropped by a record amount.

The consumer price index dropped 1% on a seasonally adjusted basis compared to the previous month, the U.S. Labor Department said today.

It was the largest drop since February 1947. Consumer prices were unchanged during September.

The big drop reflected not only a huge fall in gasoline and other energy costs, but widespread declines in other areas.

Core consumer prices, which exclude food and energy, fell by 0.1% in October, the largest drop since December 1982.

Energy prices plunged 8.6% in October compared to the prior month. Gasoline prices in October plummeted 14.2%. Household energy items dropped 0.9%. Food prices climbed 0.3% last month.

Transportation prices decreased 5.4% on the month as airline fares dropped 4.8% and new vehicle prices fell by 0.5%.

Housing, which accounts for 40% of the CPI index, was unchanged.

U.S. consumer prices, unadjusted, rose 3.7% on a year-over-year basis in October. The core CPI rose 2.2% compared to October 2007.

Meanwhile, U.S. home construction took its fourth tumble in a row during October, falling to a new record low.

Housing starts decreased 4.5% to a seasonally adjusted 791,000 annual rate, after falling 3.0% in September to 828,000, the U.S. Commerce Department said today. Originally, Commerce reported September starts 6.3% lower at 817,000.

August starts plunged 10%.

The October decrease was in line with what Wall Street expected. Economists had forecast a 4.7% drop to an annual rate of 779,000. The construction level of 791,000 was a record low.

IE