First-Time Claims for Unemployment Insurance Decrease to 376,000, Inflation Up to 13-Year High
WASHINGTON, D.C. — A total of 376,000 Americans filed for first-time unemployment insurance assistance for the week that ended June 5, the U.S. Department of Labor reported Thursday. These claims were a decrease of 9,000 from the previous week’s unrevised unemployment claims of 385,000. Still, the claims were higher than the Dow Jones economists’ estimates of 370,000, according to CNBC.
The most recent nonfarm payroll employment report showed the economy added 559,000 jobs in May, which was lower than what economists expected. With enhanced unemployment assistance in most states still available until September, some officials are worried about inflation. The U.S. Department of Labor reported that consumer prices in May increased at a faster pace than at any point since August 2008.
Compared to one year ago, the consumer price index (CPI), which tracks the movement in prices for food, groceries, housing costs, energy and other commodities, increased 5 percent. The CPI was higher than the 4.7 percent prediction from Dow Jones economists, according to CNBC.
The news outlet also says that inflation has not been a huge problem for the U.S. economy since the early 1980s, and that central bank officials are hopeful that the current inflationary pressures are temporary. Following the shutdown of the Colonial Pipeline in May due to a breach in security, gas prices skyrocketed and supply was severely limited for many Southeastern states. CNBC reports that during 2021 the gasoline index is up 56.2 percent.