The US Consumer Price Index is expected to fall by 0.1% in June after a 0.5% gain in May, according to a survey compiled by Bloomberg.
The year-over-year rate is forecast to slow to 3.8% from 4.2% as a result.
The CPI data are scheduled to be released at 8:30 am ET Tuesday.
Gasoline prices were lower in June based on AAA data, suggesting a decline in gasoline prices in the CPI report. Food prices are expected to add slightly to CPI after a 0.2% gain in the previous month.
The same survey looks for a 0.2% increase in core CPI, excluding the volatile food and energy components, same as in the previous month. The year-over-year rate is expected to remain at 2.9%.
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 vehicles prices are expected to rebound after a 0.3% drop and 0.1% gain, respectively, in the previous month.
The Federal Reserve's preferred inflation measures for June, the overall and core PCE price readings, are due to be released on July 30.