Federal Reserve policymakers were seen as more likely to skip raising interest rates this week, after government data Tuesday showed consumer price gains, while still too hot for comfort, slowed last month a bit more than expected.

Futures tied to the Fed's policy rate fell after the data, as traders firmed up bets that the U.S. central bank will decide Wednesday to forgo an 11th straight interest-rate hike and keep the benchmark rate at 5.00%-5.25%. Before the report, traders saw about a one-in-four chance of a rate hike this month; now they see only about a one-in-five chance.

(Reporting by Ann Saphir)