Consumer prices fell in August for the first time in 10 months, as another big drop in energy costs offset higher food prices, the Associated Press reported.

The Labor Department reported this morning that its Consumer Price Index dipped 0.1 percent last month, slightly better than the flat reading that had been expected. It was the first decline in consumer prices since a 0.4 percent fall in October 2006.

The new report came a day after the Federal Reserve cut a key interest rate by a half point, a bigger decrease than had been expected, in an effort to ensure that recent financial market turbulence doesn’t push the country into a recession.

Outside of food and energy, prices remained well contained in August, rising by 0.2 percent. This core inflation rate had been up by just 0.2 percent or 0.1 percent in each of the past six months.

The 0.1 percent fall in overall prices reflected a 3.2 percent drop in energy costs. It was the third straight decline in energy and the biggest drop since last October. The price of gasoline dropped by 4.9 percent, and natural gas prices were down 4.2 percent.