The cost of living in the U.S. climbed more than forecast in January, led by higher prices for food and fuel that may be starting to filter through to other goods and services.
The consumer-price index increased 0.4 percent for a second month, exceeding the 0.3 percent median estimate of economists surveyed by Bloomberg News, figures from the Labor Department showed today in Washington. The so-called core rate, which excludes volatile food and fuel costs, rose 0.2 percent, the biggest gain since October 2009.
Growing economies in Asia and Latin America are boosting global demand for oil and other commodities, raising costs for American factories. Accelerating growth is prompting some companies to carry out beginning-of-year price increases even as consumers remain constrained by unemployment at 9 percent.
"You’re going to see more companies that attempt to pass through” higher costs, said Tom Porcelli, chief U.S. economist at RBC Capital Markets Corp. in New Yor
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Added by: kum01049 |
Date: 2011-02-17
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More Americans than projected filed first-time claims for unemployment insurance last week, a sign the improvement in the labor market will take time to develop.
Applications for jobless benefits increased by 25,000 to 410,000 in the week ended Feb. 12, exceeding the 400,000 median forecast of economists surveyed by Bloomberg News, Labor Department figures showed today. The total number of people receiving unemployment insurance was little changed, while those collecting extended payments decreased.
A reduction in firings by U.S. firms is needed to keep unemployment going down. Bigger job gains are needed to boost consumer spending, which accounts for 70 percent of the world’s largest economy.
"Conditions in the labor market will continue to be tenuous as firms look for a sustained pickup in sales,” Maxwell Clarke, chief U.S. economist at IDEAglobal in New York, said before the report. "Claims should remain at an elevated level for some time but should continue
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Added by: kum01049 |
Date: 2011-02-17
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