(Reuters) - U.S. stock index futures extended their gains on Tuesday after a producer prices report showed abating inflation pressures, keeping the Federal Reserve on track to cut interest rates in September.

Data from the U.S. Labor Department showed the producer price index rose 0.1% on a monthly basis in July, compared to the 0.2% rise expected by economists polled by Reuters. Annually, it rose to 2.2%, versus an estimate of a 2.3%.

Excluding volatile food and energy components, core PPI did not increase month-on-month, compared to an expected 0.2% rise. Annually, the narrower measure of PPI stood at 2.4%, versus an estimated 2.7% advance.

At 08:30 a.m., Dow E-minis were up 111 points, or 0.28%, S&P 500 E-minis were up 32 points, or 0.57% and Nasdaq 100 E-minis were up 154 points, or 0.83%.