New claims for jobless benefits in the U.S. fell in the latest week, raising hopes that the labor market recovery is gaining strength, and a separate report showed inflationary pressures remain low, according to Reuters. On Thursday, the Labor Department reported that initial claims for unemployment benefits in the U.S. dropped by 16,000 in the week ending Mar. 12 to a seasonally adjusted level of 385,000, which was in line with expectations. The four-week average for new claims shed 7,000, moving to 386,250 to mark the lowest level since July 2008 and the third consecutive week below the critical 400,000-claim level widely seen as representing steady job growth.
The strong labor data was backed by a separate report from the Labor Department that showed the consumer price index for the U.S. was up 0.5% in February, which is the largest gain since June 2009. The gain follows a 0.4% increase the previous month, and came with a 0.1% increase in core prices, suggesting that despite the strengthening economic recovery, inflationary pressures remain muted. In the year to February, overall consumer prices added 2.1% following a 1.6% gain in the year ending January, while the core CPI added 1.1% year-over-year after a 1% rise previously.