The number of Americans filing new demands for unemployment benefits was nearing pre-pandemic figures last week. This is an indication that the number of demands is increasingly in line with job growth driven by frenetic economic activity, increased vaccinations and heavy fiscal stimulus.
However, user prices continued to climb higher in May as the transmission of the pandemic eased. Initial claims for unemployment benefits were 376,000 for the week ended June 05, according to a report released by the Department of Labor on Thursday. This figure also decreased compared to the previous week, which was from 385,000. This week's reading is the lowest since mid-March 2020.
So far the number of jobless claims has declined for the sixth week in a row. Layoffs are on the wane, with employers trying to offer jobs to those who are unemployed.
At the same time, nearly half of the adult population has been vaccinated. On the other hand, the User Price Index has risen 0.6% in the last month after jumping 0.8% in April, which was the biggest gain since Jun 2009.
On an annual basis, May's PPI/CPI has increased by 5% its biggest annual increase since August 2008. Analysts think that this modest rise in inflation rate will not impress the monetary base. Fellowship Rizab's chairman Jerome Powell has repeatedly stated that this higher inflation is temporary.
