WASHINGTON, USA – US consumer prices rose less than expected for a second straight month in November amid decreases in the costs of gasoline and health care as well as used cars and trucks, leading to the smallest annual increase in inflation in nearly a year.

Underlying consumer prices advanced by the least in 15 months, the report from the Department of Labor on Tuesday, December 13, also showed, clearing the way for the Federal Reserve to start scaling back the size of its interest rate hikes on Wednesday, December 14.

While Americans still faced higher costs for rental housing, economists expected a moderation next year. The report was published as officials at the US central bank gathered for their final two-day policy meeting of the year.

The Fed, in the midst of its fastest rate-hiking cycle since the 1980s, is expected to lift its benchmark overnight interest rate by 50 basis points Wednesday, snapping a string of four straight 75-basis-point increases. Economists still expected the Fed to maintain its monetary policy tightening campaign at least through the first quarter of 2023.