Wholesale prices nationwide fell 0.4 percent in October from a year earlier for the 38th straight monthly fall, the Bank of Japan said in a preliminary report Thursday.
The prices are measured by the central bank's corporate goods price index, which stood at 94.8 against the base of 100 for 2000.
The margin of decline narrowed for the fourth straight month and is the smallest since September 2000, when the prices decreased 0.2 percent on a year-to-year basis.
On a month-to-month basis, the CGPI was down 0.2 percent.
Prices of utilities fell 4.7 percent from the previous month but rose 0.9 percent from a year earlier.
Electrical appliances such as air conditioners fell 0.5 percent from the previous month and 5.9 percent from a year earlier.
Agricultural products rose as rice prices increased 6.1 percent from the previous month and 7.1 percent from a year earlier amid concerns about supply shortages following the unseasonably cool summer.
Export prices fell 6.8 percent in yen terms from a year earlier and 2.9 percent from September. When measured by contract currencies, export prices were down 1.0 percent from a year earlier and 0.1 percent from September.
Import prices fell 6.3 percent from a year earlier in yen terms and 3.4 percent from September.
In terms of contract currencies, they rose 2 percent from a year earlier.