NEW YORK — Oil prices extended their retreat Tuesday, shedding $10 a barrel in a violent, two-day slide as tumult on Wall Street dims hopes for a swift economic recovery and signals another drop in U.S. energy demand.

Crude, which shot up near $150 a barrel only two months ago, is now down 8 percent for the year.

Meanwhile, gas prices edged higher at the pump, topping $3.85 a gallon amid the aftermath of Hurricane Ike. However, given crude's continuing slide, retail gas was expected to turn lower within a few weeks.

WASHINGTON — Consumer prices in August posted the first monthly decline in nearly two years as Americans finally get a break from surging energy prices.The Labor Department reported Tuesday that consumer prices edged down 0.1 percent last month, a significant improvement from a 1.1 percent price spike in June and a 0.8 percent rise in July. The cost of gasoline and other fuels have plunged, reflecting big drops in crude oil prices.The decline, which was in line with expectations, may give the Federal Reserve the room it needs to cut interest rates if Fed officials feel a rate reduction could help stabilize turbulent financial markets.Stocks turned in their worst performance since 2001 on Monday, with the Dow Jones industrials plunging more than 500 points on worries about a teetering financial system. Stocks were headed for a lower opening on Tuesday, too.

SPRING GROVE — The maker of Arm & Hammer products and other consumer items has broken ground on a new laundry detergent production facility and distribution center in Pennsylvania.Church & Dwight Co. officials said Tuesday the new facility is scheduled to open about 10 miles outside of York by the end of next year. It will employ at least 300 people.Gov. Ed Rendell says the company is receiving about $3.5 million in tax breaks and other state incentives to relocate some of its operations from North Brunswick, N.J.The company says it's unable to expand its North Brunswick complex because its operations are spread among five separate buildings.Church & Dwight is based in Princeton, N.J.