The Toronto stock market closed lower Friday, as resource issues slumped, and U.S. inflation data cast doubt on the likelihood of further interest rate cuts.

The S&P/TSX composite index was down 73.02 points, or 0.53% to close at 13,674.23.

For the week, the benchmark index dropped 1.4%.

Seven of the 10 TSX subgroups moved lower.

The resource-laden materials subgroup dropped 1.39%. Gold futures fell for a second day, as the U.S. dollar climbed. Gold for February delivery closed down US$6, at US$798 an ounce on the New York Mercantile Exchange.

Kinross Gold fell 69¢, or 3.8%, to $17.50.

The financials index gave up 0.66% as stronger-than-expected U.S. inflation data fueled concerns that the U.S. Federal Reserve may stop cutting interest rates.

CIBC dropped $2.99 to $73.60 and Manulife Financial was down 0.09¢ to $41.01.

The energy sector declined 0.46% as oil prices moved lower. The January crude oil contract closed down 98¢, at US$91.27 a barrel on NYMEX.

Canadian Natural Resources retreated 74¢ to $69.70

BCE shares traded actively, amid rumours that its deal with an investor’s group led by Ontario Teachers’ Pension Plan may be under renegotiation. The company sent out an afternoon release denying any such changes and BCE shares closed at $38.60, up 0.63%.

The session’s big gainer was Extreme CCTV. Its shares shot up $1.01, or 25.90%, to $4.91 after an announcement that Germany’s Robert Bosch GmbH will acquire the high-tech surveillance firm for $93 million in cash.

The junior S&P/TSX Venture composite index fell 2.29 points, or 0.08%, to 2,692.34.

The Canadian dollar edged up 0.03 of a cent to close at US98.33¢.

In New York, stocks tumbled on the larger-than-expected jump in consumer inflation.

The Dow Jones industrial average lost 178.11 points, or 1.32%, shutting down at 13,339.85. The S&P 500 dropped, falling 20.46 points, or 1.37% to 1,467.95. The Nasdaq composite index also fell 32.75 points, or 1.23%, to 2,635.74.

For the week, the Dow was down 2.1%, the S&P was down 2.5% and the Nasdaq was down 2.6%.