Bank of America Global Research previews the US May CPI report on Wednesday.

"We forecast headline CPI rose by 0.46% m/m driven by another jump in energy prices. The y/y rate should increase from 3.8% to 4.2% -- highest since Apr 23. Meanwhile, core CPI should be cooler at 0.20% (2.8% y/y)," BofA notes.

"This reflects our expectations for modest core goods (+0.05% m/m), a normalization in rent, and softer core services ex rents. For the policy outlook, the focus will be on the implications for core PCE inflation, especially since it's been running above CPI since last Nov," BofA adds.