Photo: Workers powder-coat components at a facility in Williamsburg, Iowa. Photographer: Daniel Acker/Bloomberg Workers powder-coat components at a facility in Williamsburg, Iowa. Photographer: Daniel Acker/Bloomberg

Applications for unemployment benefits climbed to a more than one-year high and wholesale inflation continued to moderate, adding to signs of softening in the economy.

The producer price index (PPI) for final demand increased 2.3 percent in April from a year ago, the slowest pace since early 2021, extending a year-long easing tied to falling commodities costs and improved supply chains. Government data released on Thursday also showed initial jobless claims last week rose to the highest since October 2021.

Metric Actual Median Estimate
Jobless claims 264k 245k
PPI MoM +0.2% +0.3%
PPI YoY +2.3% +2.5%
Core PPI YoY +3.2% +3.3%

At a high level, the reports may bolster chances that the Federal Reserve will pause its run of interest-rate hikes at next month’s meeting. However, details beneath the surface show persistent inflationary pressures that officials are struggling to tame.

 

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