The US Consumer Price Index is expected to rise by 0.1% in July after a 0.4% decline in June, according to a survey compiled by Bloomberg.
The year-over-year rate is forecast to slow to 3.4% from 3.5% as a result.
The CPI data are scheduled to be released at 8:30 am ET Wednesday.
Gasoline prices are expected to decline in July, according to Scotiabank. Food prices are expected to add slightly to CPI after a 0.2% gain in the previous month, according to a Jefferies research note.
The same survey looks for a 0.2% increase in core CPI, excluding the volatile food and energy components, after a flat reading in the previous month. The year-over-year rate is expected to slow to 2.5% from 2.6%.
Price inflation in the owners' equivalent rents and regular rents categories is forecast to subside, according to Scotiabank. Those two categories combine for nearly one-third of overall CPI and are a key focus for the Federal Reserve.
New vehicle and used vehicle prices are expected to drop after a flat reading and a 0.2% drop, respectively, in the previous month.
The Federal Reserve's preferred inflation measures for July, the overall and core PCE price readings, are due to be released on Aug 26.