US core consumer prices kept rising in October, and new claims for unemployment benefits unexpectedly shot higher last week, according to government reports today.
Core consumer prices excluding food and energy items rose 0.2 per cent, the same as in September. On a year-over-year basis, core prices gained 2.4 per cent in each of September and October.
The prices data was included in a Commerce Department report that showed US incomes rose 0.4 per cent in October after a 0.5 per cent rise in September, while spending grew at a 0.2 per cent rate after declining 0.2 per cent in September.
Separately, the US Labor Department said new claims for unemployment pay rose a higher-than-expected 34,000 to a seasonally adjusted 357,000 last week - a surprise since Wall Street analysts had forecast they would instead ease to 314,000.
Analysts said the data reinforced an impression that the Federal Reserve will keep interest rates on hold for some time as it weighs how the economy copes with strains it is facing.
Stock futures were up after the data was issued, and bond prices were modestly stronger on the apparent hope that the Fed will keep rates on hold. The dollar, which has been battered in recent sessions, held steady at weaker levels.
Some analysts played down the significance of the jump in jobless claims, noting that the US Thanksgiving Day holiday last week may have distorted the numbers.