(Reuters) - U.S. stock index futures pared losses on Friday as investors assessed an in-line inflation report to gauge the Federal Reserve's monetary policy move when it meets next month.

A Commerce Department report showed the Personal Consumption Expenditures Price index (PCE) rose 0.2% in July, compared with an estimate of 0.2% per economists polled by Reuters. Annually, it stood at 2.6% against estimates of 2.6%.

Excluding volatile items such as food and energy, the index increased 0.3%, compared with an estimate of 0.3%. It rose 2.9% on a year-on-year basis against estimates of 2.9%.

At 08:33 a.m. ET, Dow E-minis were down 114 points, or 0.25%, S&P 500 E-minis were down 17.5 points, or 0.27%, and Nasdaq 100 E-minis were down 110 points, or 0.46%.

(Reporting by Sanchayaita Roy in Bengaluru; Editing by Devika Syamnath)