US stocks open lower amid inflation rise, oil decline

Consumer prices up 0.2 percent in August

NEW YORK (AA) -- The U.S. stock market opened lower Friday as consumer prices rose higher than expectations amid a decline in oil prices.

The Dow Jones fell nine points to begin the day at 18,202 and the S&P 500 was down three points at 2,144. The Nasdaq decreased 10 points to open the day at 5,238.

The Consumer Price Index -- which is key to measuring changes in inflation -- increased by 0.2 percent in August, compared to the previous month and by 1.1 percent from the same month a year ago, according to the U.S.’ Department of Labor earlier on Friday.

Market expectations for the index were an increase of 0.1 percent monthly and 1.1 percent year-over-year.

The index is closely watched by the Federal Reserve to see if inflation in the U.S. will reach the bank's target of two percent in order to increase interest rates.

With the rise in inflation, some analysts suggest the Fed could still make a rate hike in September, something which weighed down on stocks on Wall Street.

A decline in oil prices also contributed to the sell-off in the market at the opening bell.

American benchmark West Texas Intermediate was down 2.4 percent to $42.90 per barrel. International benchmark Brent crude traded at $45.63, down two percent.


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