Outside those volatile categories, inflation stayed tame. Lower inflation means the Federal Reserve has more leeway to continue its aggressive policies to boost economic growth. If there were signs that inflation was picking up, the Fed might be forced to raise interest rates. Food prices also fell 0.8 percent, the most since May 2011. That's the smallest yearly gain since July and down from a 1.7 percent pace just two months ago. Core prices have risen only 1.7 percent in the past 12 months and are just below the Fed's 2 percent inflation target. Paul Dales, an economist at Capital Economics, said wholesale prices may fall further as declining prices for many commodities work their way through the supply chain. Slowing manufacturing output could also weigh on prices. Some of the price declines are being passed on to consumers. Economists forecast that the consumer price index fell 0.1 percent in April. If accurate, that would lower the annual pace of inflation, which was just 1.5 percent in March. The government will report on April consumer prices Thursday. The Fed has said it plans to keep the short-term interest rate it controls at a record low near zero until the unemployment rate falls below 6.5 percent, provided inflation remains in check. A little inflation can be good for the economy because it encourages consumers and businesses to spend more before prices rise.