Wall Street closes lower with inflation inching up

NEW YORK (AA) - U.S. stocks closed lower Friday as a rise in inflation increased the likelihood the Federal Reserve will rise interest rates next week.

The Consumer Price Index rose by 0.2 percent in August, according to the Labor Department that also said the index increased 1.1 percent from the same month a year ago.

The rise brings inflation closer to the Fed’s 2 percent inflation target and increases the chances the bank will raise rates next Wednesday, according to analysts.

Worries about a rate hike led to losses on Wall Street.

The Dow Jones fell 88 points to end the day at 18,123 and the S&P 500 was down eight points to 2,139. The Nasdaq lost five points to finish at 5,244.

For the week, the Dow was up 0.2 percent, the S&P gained 0.5 percent, and the Nasdaq increased 2.3 percent.