Jobless Claims Dip; Consumer Prices Up 0.2 Percent

By
The Associated Press

Published October 15, 2009 8:36 AM

The
number of newly laid-off workers filing claims for unemployment
insurance has fallen to the lowest level since early January, a sign
the labor market is slowly improving. Separately, the Consumer Price
Index edged up a slight 0.2 percent in September, with energy costs up
but food prices down

The Labor Department said Thursday that
first-time claims for jobless benefits dropped to a seasonally-adjusted
514,000 from an upwardly revised 524,000 the previous week. The fifth
decline in six weeks was below Wall Street economists' forecasts of
525,000, according to Thomson Reuters.

The four-week average, which smooths fluctuations, fell for the sixth straight time to 531,500.

The tally of people continuing to claim benefits dropped by 75,000 to 5.99 million, its first time below 6 million since
the week of March 28.

Consumer Prices Subdued

Inflation pressures remained modest in September even though gasoline prices edged higher.

The Labor Department said consumer prices rose 0.2 percent last month, matching economists' expectations. Prices excluding
energy and food were also up 0.2 percent, slightly higher than the 0.1 percent increase analysts had forecast.

Over the past 12 months, consumer prices are actually down 1.3 percent, reflecting a severe recession which has kept
a lid on price pressures across a wide range of products and services.