NEW YORK, Dec 13 (Reuters) - U.S consumer prices barely rose in November amid declines in the

cost of gasoline and used cars leading to the smallest annual increase in inflation in nearly a year

which could give the Federal Reserve cover to start scaling back the size of its interest rate

increases on Wednesday. The consumer price index increased 0.1% after advancing 0.4% in October,

the Labor Department said on Tuesday. Economists polled by Reuters had forecast the CPI gaining 0.3%

In the 12 months through November, the CPI climbed 7.1%. That was the smallest advance since

December 2021. Annual inflation is slowing in part as last year's big increases drop out of the

while Fed tightening is also dampening demand. STOCKS: S&P 500 futures extended gains sharply and

BONDS: The yield on 10-year Treasury notes tumbled and was down 15 basis points at 3.461%;

The two-year U.S. Treasury yield was down 17.8 basis points at 4.225%.

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