U.S. consumer prices were unexpectedly flat during November as food and energy prices fell. Core inflation was also unchanged in the lowest reading in more than a year.

A separate report showed industrial production rose last month as manufacturing activity picked up, though capacity utilization fell.

The consumer-price index was unchanged in November, the U.S. Labor Department said today. Core inflation, which excludes food and energy prices, also held steady in the lowest level since a flat reading in June 2005.

In October, the CPI fell 0.5% and the core inched up 0.1%. Unrounded, the core CPI rose 0.048% in November and 0.096% in October.

Wall street economists had called for 0.2% increases in both CPI and the core index.

In annual terms, overall consumer prices were 2.0% higher than a year earlier, on an unadjusted basis and core prices rose 2.6%.

According to today’s report, energy prices last month decreased by 0.2%, after tumbling by 7.0% in October. Gasoline prices last month dropped by a seasonally adjusted 1.6%. Natural gas increased 4.7%. Electricity prices dipped 0.2%. Food prices decreased 0.1%.

The transportation index was 0.9% lower, as gasoline prices fell and new vehicle prices were down 0.7%. Transportation costs in October fell 3.1%. Medical-care prices increased 0.2%.

Housing, which accounts for 40% of the index, rose by 0.4%, after remaining flat in October. Rent climbed by 0.4% and owners’ equivalent rent also rose 0.3%. Clothing prices decreased 0.3%, while education and communication fell 0.2%.

In a separate report, the Labor Department said the average weekly earnings of U.S. workers, adjusted for inflation, increased 0.2% in November. Average hourly earnings rose 0.2%. Average weekly hours were unchanged.

Meanwhile, U.S. industrial production increased 0.2% in November, after a revised flat reading in October, which had been originally reported as a 0.2% increase, the Federal Reserve said today.

Industrial capacity utilization was steady at 81.8% and the October utilization rate was revised down 0.2 percentage point to 81.8%. November utilization rates remained 0.8 percentage point above the 1972-2005 average.

Economists had expected a 0.1% rise in industrial production and 82.2% reading on capacity utilization.

Manufacturing output rose 0.3% last month, following a revised 0.5% decrease in October. Manufacturing capacity utilization was flat at 80.3%.