In the past year, wholesale prices have increased 1.5 percent. That's the lowest annual pace in four months.
That can lead to more consumer spending, which drives about 70 percent of the economy, and the government on Thursday reported an uptick in retail sales for November.
Americans spent more on everything from cars to building supplies. Yet one troubling aspect of the report was a decline in the money consumers spent at department stores.
That is bad news at the start of the holiday shopping season, but the Commerce Department said that sales for non-store retailers, including online shopping, rose 3 percent.