Annual consumer inflation in the US came in at 7.1% in November, easing from the 7.7% in October, according to official figures released on Tuesday.
The consumer price index (CPI), which measures changes in the prices of goods and services from a consumer's perspective, came in lower than the market estimate of a 7.3% annual increase.
The figure has been the smallest 12-month increase since the period ending December 2021, while it is a sharp decline from a 9.1% yearly gain in June, which had been the largest 12-month increase since November 1981.
The CPI in November rose 0.1% from the previous month, again coming below the market expectation of a 0.3% gain. The CPI in October showed a monthly gain of 0.4%.
"The food index increased 0.5 percent over the month with the food at home index also rising 0.5 percent," the Labor Department said in a statement.
"The energy index decreased 1.6 percent over the month as the gasoline index, the natural gas index, and the electricity index all declined," it added.
Core CPI, which excludes food and energy, gained 0.2% in November from the previous month, again below the market expectation for a 0.3% rise. In October, core CPI also posted a monthly increase of 0.3%.
Annually, core CPI rose 6% in November, also coming below the market estimate of a 6.1% gain, while it rose 6.3% in October year-on-year.
"The energy index increased 13.1 percent for the 12 months ending November, and the food index increased 10.6 percent over the last year; all of these increases were smaller than for the period ending October," the statement said.
The inflation data came on the day when the US Federal Reserve kicked off its key two-day monetary policy meeting. The central bank will announce its interest rate decision on Wednesday at 2 p.m. EDT (1900GMT), in which it is expected to make a rate hike of 50 basis points.
The Fed has raised its benchmark interest rate by a total of 375 basis points, or 3.75%, since March to bring record inflation under control.
President Joe Biden said the slowdown in consumer inflation "provides some optimism for the holiday season and the year ahead," during a speech at the White House.
"In a world where inflation is rising in double digits in many major economies around the world, inflation is coming down in America," he said, underlining that November is the fifth month in a row that annual inflation and used car prices have fallen.
"Make no mistake, prices are still too high," said Biden, and added that gasoline prices are now lower than a year ago, giving a break to Americans.
The president said food inflation has also slowed in November, providing relief to consumers before the Christmas holiday.
Biden noted that the US economy added 10.5 million jobs during his tenure, including 750,000 in manufacturing, while the unemployment rate dropped from 6.4% to 3.7%.
The US has also lowered the federal debt $1.7 trillion during that time, he added.
"For the last several months, wages have gone up more than prices have gone up," said the president. "It is going to take time to get inflation back to normal levels as we make the transition to a more stable and steady growth."
"I hope by the end of next year" prices will return to normal, "but I can't make that prediction. I'm just convinced that they are not going to go up," he said.
