US jobless claims fall and consumer prices rise more than expected in May

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The number of Americans filing new applications for unemployment benefits fell last week, to the lowest level in nearly 15 months, while consumer prices increased again in May, with domestic demand continuing to strengthen as the pandemic loosens its grip on the economy.

Today, Thursday, the US Department of Labor said that total government jobless claims filed for the first time reached a seasonally adjusted level of 376,000 for the week ending June 5, compared to 385,000 in the previous week. That was the lowest level since mid-March 2020, when the first wave of COVID-19 infections swept the country, shutting down non-essential businesses.

Thus, requests fell for the sixth week in a row. Layoffs are fading as employers seek employment, with millions of Americans staying at home due to the difficulty of securing child care, generous unemployment benefits and fear of the virus, despite vaccines being widely available.

For its part, US data showed that consumer prices rose by 0.6% in May, which is higher than expected.

The Labor Department announced that its consumer price index rose 0.6% in May, after jumping 0.8% in April. Economists had expected consumer prices to rise by 0.4%.

Excluding food and energy prices, core consumer prices rose 0.7% in May, after rising 0.9% in April. Core prices were expected to rise by 0.4%.

The data showed that consumer prices increased in May by 5% compared to the same month last year, marking the highest rise since August of 2008.

The annual rate of core consumer price growth accelerated to 3.8% in May, the largest jump since June 1992.







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