Claims for U.S. jobless benefits rose sharply last week, moving up by a seasonally adjusted 42,000 to 367,000 for the week ending May 13—producing the highest level of claims since early October, the Labor Department reported. The latest figures were distorted by a shutdown of the Puerto Rican government last week, which caused a surge in jobless claims, the department said. Without the blip, last week's claims would have been 312,000, or actually lower than the economist forecasts of 318,000. The same department report also showed that the total number of people continuing to collect unemployment benefits went up by 8,000 to 2.389 million for the week ending May 6. After a government report released Wednesday showed consumer prices rose in April due to higher energy costs, many economists believe the Federal Reserve will need to raise interest rates yet again to fight inflation. Any strong labor market reports or positive unemployment reports are likely to reinforce that view.
