Stock index futures slipped on Friday as oil prices hovered near record highs, offsetting optimism from a government report that pointed to tame inflation.

The rise in crude may add to concerns about the impact of higher energy prices on consumers’ spending and costs faced by businesses, but shares of energy companies such as Exxon Mobil Corp. (XOM.N) could benefit.

Futures trimmed losses after data on consumer spending and inflation. A government report showed a measure of consumer prices closely watched by the Federal Reserve — core personal consumption expenditures — in August posted the smallest year-over-year rise in about 3-1/2 years.

“We have the year-to-year (inflation) rates slipping down now further into the Fed’s comfort zone,” said Michael Darda, chief economist at MKM Partners LLC, in Greenwich, Connecticut.

The boost from the tame inflation data “will prove to be temporary, but for now it’s probably a near-term catalyst for higher stock prices.”

S&P 500 futures were down 2.8 points but cut earlier losses and were above fair value, a mathematical formula that evaluates pricing by taking into account interest rates, dividends and time to expiration on the contract.

Dow Jones industrial average futures fell 16 points, and Nasdaq 100 futures shed 2 points.

The Commerce Department also said U.S. consumers boosted their spending at the strongest rate in four months during August.

U.S. crude for November delivery rose 39 cents to $83.27 a barrel, not far from its all-time high of $83.90.

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