Two new indicators out Thursday illustrate the economy’s woes: Prices accelerated again last month as the labor market shows fresh signs of weakness.
The Consumer Price Index rose 0.4% in August, doubling the prior month’s pace, with large increases in the cost of food and gasoline.
Over the previous 12 months, CPI increased 2.9%, after rising 2.7% in July.
Core CPI, excluding food and energy, neither heated up nor cooled: It rose 0.3% for the second month and held at 3.1% in the year ending in August.
Jobless claims skyrocketed by 27,000 to 263,000 last week, the highest level since October 2021.
“For the first time in a long time, CPI is being overshadowed on its release day by another data series — initial jobless claims,” ClearBridge Investments’ Josh Jamner wrote in a client note.
Hiring is already sluggish, but layoffs had remained relatively low. The data suggests this dynamic could be changing, as more Americans filed for unemployment benefits.
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Two new indicators out Thursday illustrate the economy’s woes: Prices accelerated again last month as the labor market shows fresh signs of weakness.
The Consumer Price Index rose 0.4% in August, doubling the prior month’s pace, with large increases in the cost of food and gasoline.
Over the previous 12 months, CPI increased 2.9%, after rising 2.7% in July.
Core CPI, excluding food and energy, neither heated up nor cooled: It rose 0.3% for the second month and held at 3.1% in the year ending in August.
Jobless claims skyrocketed by 27,000 to 263,000 last week, the highest level since October 2021.
“For the first time in a long time, CPI is being overshadowed on its release day by another data series — initial jobless claims,” ClearBridge Investments’ Josh Jamner wrote in a client note.
Hiring is already sluggish, but layoffs had remained relatively low. The data suggests this dynamic could be changing, as more Americans filed for unemployment benefits.