The first inflation reading since the Reserve Bank's first rate cut in more than four years is expected to show a modest uptick as power bill relief continues to roll off.
The monthly consumer price index is not as closely watched by the RBA board as the quarterly figure.
But with the Australian Bureau of Statistics not due to release the March quarter print until April 30, four weeks after the board's next meeting, Wednesday's data for the month of January will provide the next best insight into whether disinflation is continuing apace.
AMP chief economist Shane Oliver predicts a bump in the road for the headline CPI, which had been dead on the RBA's target of 2.5 per cent in December.
"January monthly CPI data is likely to rise to 2.8 per cent year-on-year as the energy rebates continue to roll off, with trimmed mean inflation also rising slightly to 2.8 per cent year-on-year from 2.7 per cent," he said.
Trimmed mean inflation, the central bank's preferred inflation gauge, came in below estimates at 3.2 per cent for the December quarter, helping convince the board to cut the cash rate at its meeting last week.
But with the labour market still unexpectedly tight and RBA economists revising their inflation forecasts upwards, inflation will need to continue its downward trend to reassure the board that more cuts are warranted.
Treasurer Jim Chalmers said the economy had turned a corner, with inflation down, wages up, unemployment low, government debt down and now interest rates starting to fall as well.
Late on Tuesday night AEDT, Dr Chalmers met with his US counterpart Scott Bessent face-to-face for the first time, as well as National Economic Council Director Kevin Hassett.
Dr Chalmers spruiked the benefits to both countries of exempting Australian companies from President Donald Trump's 25 per cent tariffs on steel and aluminium exports, which he has previously said could increase inflation and slow economic growth.
