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NEW YORK — Americans cut back on spending in December, the second consecutive month they’ve done so.

Treasury Secretary Janet Yellen welcomed the most recent U.S. inflation figures, saying some of the most important price pressures over the past two years had begun to decline significantly.

WASHINGTON — Rising U.S. consumer prices moderated again in December, bolstering hopes that inflation’s grip on the economy will continue to ease this year and possibly require less drastic action by the Federal Reserve to control it.

Inflation in the United States slowed again in November in the latest sign that price increases are cooling despite the pressures they continue to inflict on American households.

The Federal Reserve will push rates higher than previously expected and keep them there for an extended period, Chair Jerome Powell said Nov. 30 in remarks likely intended to underscore the Fed’s focus on combating inflation.

The U.S. job market remains healthy as fewer Americans applied for unemployment benefits last week, despite the Federal Reserve’s rapid interest rate hikes this year intended to bring down inflation and tighten the labor market.

Prices at the wholesale level rose 8% in October from a year ago, the fourth straight decline and the latest sign that inflation pressures in the United States are easing from painfully high levels.

U.S. inflation cooled in October by more than forecast, offering hope that the fastest price increases in decades are ebbing and giving Federal Reserve officials room to slow down their steep interest rate hikes.

While prices on new and used vehicles remain 30% to 50% above where they were when the pandemic erupted, signs are pointing to many vehicles becoming slightly more affordable.

The U.S. economy grew at a 2.6% annual rate from July through September, snapping two straight quarters of contraction and overcoming high inflation and interest rates just as voting begins in midterm elections in which the economy’s health has emerged as a paramount issue.