InstaForex InstaForex

Prime News

U.S. Producer Prices Drop, Unemployment Claims Rise

U.S. Producer Prices Drop, Unemployment Claims Rise

U.S. producer prices dropped for the first time in almost 1-½ years in December amid falling costs for services, which could weigh on expectations that inflation will pick up this year.

Separate data showed that initial claims for jobless benefits rose for the fourth consecutive week to over a three-month peak. Winter and snow in parts of the United States likely kept some workers at home, which accounts for the previous week's rise in unemployment claims.

The U.S. Federal Reserve is projecting three rate hikes for 2018. It raised rates three times in 2017.

According to the Labor Department, its producer price index for final demand dropped 0.1 percent in December. It was the first decline in the PPI since August 2016 and followed two consecutive monthly growth of 0.4 percent.

The PPI increased 2.6 percent from the same period in 2016, after accelerating 3.1 percent in November.

A key gauge of underlying producer price pressures, excluding food, energy and trade services, climbed 0.1 percent in December. The so-called core PPI rose 0.4 percent in November. It increased 2.3 percent in the 12 months through December after rising 2.4 percent in November.

In the separate report, the Labor Department said initial claims for state unemployment benefits rose 11,000 to a seasonally adjusted 261,000 for the week ended Jan. 6, the highest level since late September.

Claims have risen since mid-December, though the data tend to be volatile during year-end holidays.

Recommend: Prime News
German Business Sentiment Drops - Ifo
25 Apr 2018, 00:41 UTC+00   
Views today: 1351 
UK Deficit Returns to Pre-Crisis Levels
25 Apr 2018, 03:14 UTC+00   
Views today: 1322 
Dollar Climbs as U.S. Yields Rise to 4-Year Highs
25 Apr 2018, 05:37 UTC+00   
Views today: 1319 
U.S. Consumer Confidence Bounces Back in April
25 Apr 2018, 04:02 UTC+00   
Views today: 1318 
Oil Steady but Below Recent Highs as Increasing U.S. Inventories...
25 Apr 2018, 05:43 UTC+00   
Views today: 1313 

All Prime news

Start trading with
no risks and investments
With new Start-Up Bonus of $1000
Get bonus
from InstaForex
on every deposit
Earn up to
for inviting friends to get StartUp Bonus from InstaForex
No investments required!