New inflation data coming tomorrow is expected to show that consumer prices rose 3.4% in August and could prove crucial as a divided Fed weighs whether to hike interest rates later this month.
Economists surveyed by Bloomberg expect to see prices jump 0.4% in August from a month earlier, faster than July's 0.1% monthly gain, with annual price gains holding steady at 3.4%.
"Core" inflation, which strips out volatile food and energy prices, is expected to decline slightly on an annual basis to 2.4% and hold steady with a 0.2% monthly gain.
Fed officials have been divided over whether to raise benchmark interest rates or keep them steady to further assess if past rate hikes are helping to reduce inflation.
Both core and headline inflation have come down this year since spiking in May at 2.9% and 4.2%, respectively, but remain well above the Fed's 2% target.