Jobless claims fall to 4-year low; wholesale prices rise

Jobless claims last week fell to a level that matched a four-year low hit in February, sparking more optimism that the employment market may be on the mend.

Labor Department figures showed that initial applications for unemployment benefits for the week ended March 10 slipped 14,000 to a seasonally adjusted 351,000.

New York and California had the most significant bumps in initial claims, with 16,478 and 4,320 new applications, respectively.

The four-week moving average, which is considered more stable than the weekly numbers, remained unchanged from the previous week’s 355,750.

The numbers are the latest in a promising series of data, which recently showed increased employment in the manufacturing sector and a stable 8.3% national unemployment rate — the lowest in three years.

But the specter of high gasoline prices and inflation is still hovering over the economic recovery. Another Labor Department report found that soaring energy costs helped spur U.S. wholesale prices in February to their largest jump in five months.

The agency’s producer price index for finished goods was up 0.4% last month from a 0.1% increase in January and a 0.1% decline in December. The rising price of fuel affects manufacturers’ margins by making production more expensive.

Prices for poultry, cattle and soybeans were all up; related prices for petroleum soared 5.4%. According to the AAA Fuel Gauge Report, the average price nationwide for a gallon of regular gas is $3.82, up more than 30 cents from a month ago.

But without the more volatile index for food and energy, core prices were up 0.2% — a more manageable level that is likely to keep consumer prices steady.