Higher natural-gas and electricity prices pushed up wholesale inflation in the United States last month, while falling gasoline prices and lower demand for new cars put the brakes on an otherwise strong month for U.S. retailers.

The U.S. Labor Department said today wholesale prices as measured by its producer price index rose 0.7% in October, but the “core” index excluding food and energy dropped 0.3%, the biggest slide in more than two years.

Economists had called for the overall index to be unchanged, with a 0.2% increase in the core index.

Meanwhile, weak demand for autos and falling gasoline prices pushed retail sales lower last month. The U.S. Commerce Department said retail sales dipped by a seasonally adjusted 0.1% in October after rising a revised 0.3% in September.

Gasoline station sales decreased 0.8% last month, the sharpest decline since December’s 1.4% drop, as prices fell from the highs seen in the immediate aftermath of Hurricanes Katrina and Rita. Meanwhile, auto and parts sales tumbled 3.6% as demand dried up with the passing of summer discounts. Excluding autos and gasoline, all other retail sales climbed by 1.1% in October — the strongest climb since April’s 1.4% increase.

Separately, a report from the New York Federal Reserve suggested that manufacturers were having some success in passing on higher costs to consumers. The prices received index in its Empire State Manufacturing survey moved up to a reading of 20.19 in November from 15.63 in October. The prices paid index moved higher to 60.58 from 57.29 in October.

The overall index strengthened to 22.82 from 12.08 in October, and the New York Fed noted “an expectation that conditions will continue to improve and that prices will continue to rise over the next six months.