CPI remains static
Although the previous week’s level was revised downward by 12,000, jobless claims increased by 14,000 last week. With this increase, the jobless claims level is now 262,000, according to the latest US Department of Labor reports.
According to a Reuters poll, economists forecast 263,000 applications for the latest week.
Other stats show that the four-week moving average of claims increased by 4,500 in the week ended Aug. 6 to 252,000. The previous week’s average, however, was revised downward by 7,250.
In related news, The US Bureau of Labor Statistics reported that the consumer price index for urban consumers was unchanged in July compared to the previous month. However, year on year, the index increased by 8.5% in July, this number down from 9.1% in June.
While the cooling of headline inflation is welcome at the Federal Reserve, economists warn that the Fed wants to see more months like this and that officials are also focusing on core prices, according to Market Watch.
Sal Guatieri, Senior Economist at BMO Capital Markets, commented: “The July CPI report might be the first clear indication that consumers are pushing back against high inflation in response to tighter monetary policy. It’s a sign that inflation is close to peaking, though the climb down the mountain will be slow due to rising wages and rents.”