U.S Unemployment claims rise unexpectedly in the U.S and consumers paid a little bit more, partly due to government shutdown.
First-time claims for unemployment benefits suddenly surged up last week according to 2013 data report.
A Labor Department spokesman said as the data was released to the press. Applications (INJCJC) for unemployment insurance benefits surged by 66,000 in the week ended Oct. 5 to 374,000, the most since late March, figures from the Labor Department showed today in Washington according to Bloomberg report.
U.S. consumer prices barely rose in August as the cost of energy fell, but an increase in rents and medical care costs pointed to a stabilization in underlying inflation that could allow the Federal Reserve to start trimming its bond purchases.
The Labor Department said , its Consumer Price Index edged up 0.1 percent in August after rising 0.2 percent in July. In the 12 months through August, the increase in the CPI slowed to 1.5 percent after advancing 2.0 percent in July.
About 374,000 people filed for their first week of unemployment benefits last week, 66,000 more than just a week earlier. It was the largest one-week rise since November 2012, when unemployment claims surged by 88,000 in the week following Super-storm Sandy.
The nation could fall back into a recession if failure by Congress to raise the nation’s debt ceiling would cascade through the economy, increasing borrowing costs for consumers and businesses, the Treasury Department has said it will run out of borrowed money on October 17 unless Congress votes to raise the nation’s $16.7 trillion debt limit, USA Today reported.