Core wholesale prices were elevated in part last month by a 1.7 percent increase in the cost of new cars. Automakers introduced their 2014 models in October, which affects prices each year. That suggests inflation was even lower.
Wholesale food prices also increased last month, primarily because of higher beef and veal costs. Wholesale prices for bread rolls, muffins, bagels and croissants rose 4 percent, the biggest month-over-month increase on records dating back to 1980.
But the steady decline in energy prices has reduced costs across much of the economy. Gas prices are tumbling because of increased domestic production, greater political stability in the Middle East, and less demand from drivers.
U.S. gas prices began falling in the spring and reached two-year lows earlier this month. The average price of a gallon of gas was $3.21 on Wednesday, according to AAA's Daily Fuel Gauge Report.
The Fed has said it will keep the short-term interest rate it controls at nearly zero at least until the unemployment rate falls below 6.5 percent, as long as the outlook for inflation stays low.
Low inflation has also allowed the Fed to continuing buying bonds to try and lower long-term interest rates.
