Prediction plays a crucial role in perception, as prominently suggested by predictive coding theories. However, the exact form and mechanism of predictive modulations of sensory processing remain unclear, with some studies reporting a downregulation of the sensory response for predictable input whereas others observed an enhanced response. In a similar vein, downregulation of the sensory response for predictable input has been linked to either sharpening or dampening of the sensory representation, which are opposite in nature. In the present study, we set out to investigate the neural consequences of perceptual expectation of object stimuli throughout the visual hierarchy, using fMRI in human volunteers. Participants of both sexes were exposed to pairs of sequentially presented object images in a statistical learning paradigm, in which the first object predicted the identity of the second object. Image transitions were not task relevant; thus, all learning of statistical regularities was incidental. We found strong suppression of neural responses to expected compared with unexpected stimuli throughout the ventral visual stream, including primary visual cortex, lateral occipital complex, and anterior ventral visual areas. Expectation suppression in lateral occipital complex scaled positively with image preference and voxel selectivity, lending support to the dampening account of expectation suppression in object perception.