US weekly jobless claims rise; imported inflation subdued

The number of Americans filing applications for unemployment benefits unexpectedly rose last week, which could add to concerns that the labour market was losing steam after job growth slowed sharply in May.
Other data on Thursday showed import prices fell by the most in five months in May amid a broad decline in the cost of goods, the latest indication of muted inflation pressures. The import deflation supports expectations that the Federal Reserve will cut interest rates this year.
US central bank policymakers are scheduled to meet on June 18-19 against the backdrop of rising trade tensions. Financial markets have priced in at least two rate cuts by the end of 2019. A rate cut is not expected next Wednesday.
Initial claims for state unemployment benefits rose 3,000 to a seasonally adjusted 222,000 for the week ended June 8. Economists polled by Reuters had forecast claims decreasing to 216,000 in the latest week.
While layoffs remain relatively low, the third straight weekly increase in claims suggests some softening in labour market conditions. The four-week moving average of claims, considered a better measure of labour market trends as it irons out week-to-week volatility, rose 2,500 to 217,750 last week.
In another report on Thursday, the Labour Department said import prices dropped 0.3% last month, the biggest decline since last December, after edging up 0.1% in April. In the 12 months through May, import prices fell 1.5% after decreasing 0.3% in April. The report came on the heels of data on Wednesday showing consumer prices remained tame in May.
Import prices exclude duties. In May, prices for imported fuels and lubricants declined 1.0% after rising 1.7% in the prior month. Imported food prices dropped 0.8% last month after surging 2.7% in April.
Excluding fuels and food, import prices slipped 0.2% in May after falling 0.3% in the prior month. So-called core import prices decreased 1.5% in the 12 months through May. Though the dollar has weakened a bit this year, its gains last year against the currencies of the United States' main trading partners continue to depress core import prices.
The cost of imported capital goods declined, but prices for imported consumer goods excluding automobiles were unchanged. The cost of goods imported from China edged down 0.1% last month after falling 0.2% in April. Prices fell 1.4% in the 12 months through May, the largest drop since February 2017.