As anticipated, the annual rate of inflation in the United States decreased in November. This significant development is likely to influence the way Federal Reserve policymakers see the trajectory of interest rates in the upcoming year.

Based on figures released by the Bureau of Labor Statistics on Tuesday, the annual headline consumer price rise slowed to 3.1% last month from 3.2% in October. Monthly, there was a 0.1% increase in the reading. The measures were expected by economists to be 3.1% and 0.0%, respectively.

Consistent with the previous month, the highly monitored "core" figure which excludes volatile goods like food and energy—rose by 4.0% annually. Underlying price growth for the month came in at 0.3%, a little faster rate than 0.2% in October. Both estimates lined up.

The figures might offer some insight into how the Fed's protracted campaign of interest rate increases has affected price rise in the biggest economy in the world. While some market watchers anticipate that the Fed will start lowering borrowing prices in the first quarter of 2019; Fed Chair Jerome Powell has emphasized that officials will proceed "carefully" in their search for evidence that the recent period of high inflation has ended.

The Fed will announce its most recent monetary policy decision on Wednesday. However, since it is almost a given that the central bank would maintain interest rates at their more than two-decade high of 5.25% to 5.50%, Powell's remarks will probably be the center of attention. There will also be an emphasis on the release of the Fed's quarterly "dot plot," which shows where policymakers anticipate interest rates to go.