Filed by KOSU News in Business.
October 15, 2009

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.

Copyright 2009 The Associated Press