A monthly government report on consumer inflation showed that the dramatic price drop crude oil has finally relieved a little pressure for consumers.

The U.S. Labor Department said the Consumer Price Index was basically unchanged in September on a seasonally adjusted basis. When removing volatile food and energy costs, CPI rose by a slight 0.1%.

Both figures were 0.1% less than what Wall Street economists were forecasting, according to Thomson Reuters.

The biggest individual component drop in the index was the price of energy, which fell 1.9% from the month before. Food and beverages continued their climb up 0.6% from the month before.

Oil has fallen nearly 50% from its June all time high of $147 a barrel. 

From a year ago, CPI is up 4.9%.

CPI is a key economic indicator used by central bankers and the U.S. government to gauge where inflation is going month to month. It is also used by the Social Security Administration to set cost of living increases.

Also with the taming of inflation for the past two months, it gives the Federal Reserve the room they need to help stimulate the economy without causing runaway inflation, according to most economists.

"The deepening recession are both will continue to drive prices down and shift the (Fed’s) concentration from inflation to resolving the financial crisis reviving the economy," FOX Business Chief Economist Mark Lieberman said.

Industrial work was also hurting. Hurricanes Gustav and Ike took a heavy toll on industrial production in August, according to a report by the Federal Reserve -- sending the nation's production down in one a month the most since 1974.

The Fed said production at the nation’s factories, utility companies and mines fell by 2.8% in August. This is on top of a 1% decline the month before..

On an annual rate, industrial production is down by 6% from a year ago.

The reason for the decline was partially caused by a 7.8% plunge in mining output -- which include oil and natural gas drilling -- and manufacturing production, which fell by 2.6% during the same time.

According to the Fed, Gustav and Ike caused an estimated disruption on production of around 2.25%. A strike in the aircraft industry also contributed to an estimated 0.5% decline in the nation’s industrial production.

Industrial production is fairly backward looking indicator, but can give an indication of where the economy is heading. This report, while disappointing, does not include the financial chaos that ensued during the month of September.