US weekly jobless claims hit 1-1/2-year high; producer inflation cooling

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U.S. Markets

4 minute read • May 11, 2023 • 10:34 AM EDT • Last Updated 2 hours ago

US weekly jobless claims hit 1-1/2-year high; producer inflation cooling

Summary
• Weekly jobless claims increase 22,000 to 264,000
• Continuing claims rise 12,000 to 1.813 million
• Producer prices climb 0.2% in April; up 2.3% year-on-year

WASHINGTON, May 10 (Reuters) - The number of Americans filing new claims for unemployment benefits jumped to a 1-1/2-year high last week, pointing to widening cracks in the labor market, which together with subsiding inflation could allow the Federal Reserve to halt further interest rate increases next month.

Cooling price pressures were underscored by other data from the Labor Department on Thursday showing producer prices rebounding modestly in April, leading to the smallest annual increase in producer inflation in more than two years. The reports suggested that demand was slowing and raised the risks of a recession later this year.

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