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Milk is displayed on shelves in a Brooklyn supermarket on June 9, 2014 in New York City.
For January, the consumer price index (CPI) - comprised of a basket of items ranging from clothes to pills - is estimated to have increased by 0.3% month-on-month, according to Bloomberg. Economists forecast that it increased by 2.4% year-on-year.
Excluding volatile food and energy costs, so-called core CPI is estimated at 0.2% month-on-month and 2.1% year-on-year.
The year-on-year change in core CPI is considered the benchmark print of this report. It could come in above the Federal Reserve's 2% target of inflation, although the central bank prefers to use the more comprehensive personal consumption expenditures index.
"Given the relatively soft inflation backdrop over the last several years, there is little reason for the Fed to rush ahead with rate hikes, especially in the first quarter, which has tended to be seasonably weak over the last several years," said Joseph LaVorgna, Deutsche Bank's chief US economist, in a note on Tuesday.