U.S. stock index futures inched higher Tuesday as investors awaited a crucial inflation reading later in the day for cues on the monetary policy trajectory, ahead of the Federal Reserve's interest rate decision later in the week.

Equities have advanced in recent weeks, with the three main stock indexes also clocking their highest close for the year on Monday, buoyed by expectations that the U.S. central bank is done hiking rates and could potentially ease monetary policy next year.

Market participants will keenly watch consumer price index (CPI) data for November, due at 8:30 a.m. ET. The report is expected to show headline inflation remained unchanged month-on-month, with core CPI expected to advance 0.3%, according to economists polled by Reuters.

The data is set to come in on the heels of the Fed's monetary policy meeting during the day, with a decision on interest rates at the end of the meeting on Wednesday.

Money markets have almost fully priced in a rate-hike pause at the end of the Fed meeting, with traders seeing a 47.5% chance of a cut as soon as March 2024, and a 79.4% chance of a cut in May, according to CME Group's FedWatch tool.

The European Central Bank and the Bank of England are also scheduled to deliver their policy verdicts later this week.

Google-parent Alphabet underperformed its megacap peers, down 1.1% in premarket trading, after "Fortnite" maker Epic Games prevailed in its high-profile antitrust trial over the company.

At 5:26 a.m. ET, Dow e-minis were up 57 points, or 0.16%, S&P 500 e-minis were up 3 points, or 0.06%, and Nasdaq 100 e-minis were up 26.5 points, or 0.16%.

Among other movers, Oracle fell 8.9% as the cloud services provider forecast third-quarter revenue below estimates on slowing demand for its cloud offerings.

Lucid was down 3.8% after the electric-vehicle maker's CFO Sherry House stepped down.

Airbnb fell 2.9% after Barclays downgraded the short-term rental firm's shares to "underweight" from "equal weight."