May 13 (Reuters) - U.S. stock index futures moved higher

on Tuesday after a lower-than-expected inflation report boosted

expectations that the Federal Reserve was on track to lower

borrowing costs this year.

A Labor Department report showed April consumer price

inflation rose 0.2% on a monthly basis and stood at 2.3%

year-on-year, with economists polled by Reuters expecting a 0.3%

monthly rise and the annual rate holding steady at 2.4%.

The core figure, which excludes volatile components such

as food and energy, rose 0.2% on a monthly basis compared to an

estimate of 0.3%. Annually, it stood at 2.8% against an

expectation of 2.8%.

At 08:32 a.m., Dow E-minis were down 118 points, or

0.28%, S&P 500 E-minis were up 7.5 points, or 0.13%, and

Nasdaq 100 E-minis were up 70 points, or 0.33%.