posted 06-10-2004 01:48 PM            

NOT.

NOW EVERY DAMNED THING YOU BUY IN THE STORE IS MADE IN FRICKIN CHINA OR INDIA.

ARE YOU FAUX MOOOS watchers STARTING TO GET IT YET?

GOTTA LOVE THE NEW WORLD ORDER

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Import Prices Surge, Jobless Claims Rise

Thu Jun 10,11:28 AM ET

By Mark Felsenthal

WASHINGTON (Reuters) - U.S. import prices rose more than anticipated in May as oil costs surged, adding to worries about inflation, while U.S. jobless claims rose unexpectedly last week, government reports showed on Thursday.

Import prices climbed 1.6 percent, notching the biggest one-month rise since February of last year and the eighth consecutive monthly advance, after a revised 0.2 percent gain in April, the Labor Department said.

The rise was double the 0.8 percent increase Wall Street analysts had anticipated and signals a boost in inflation in the U.S. economy. Higher price pressures have fueled expectations policy-makers will move sooner rather than later to raise interest rates.

"This is a little uncomfortable. This is slight bad news on the inflation front," said Robert Brusca, chief economist for Fact and Opinion Economics.

U.S. stocks rose, helped by company news, but analysts said the economic data was disquieting. The Dow Jones industrial average (^DJI - news) climbed about 20 points to 10,388, or 0.2 percent, at mid-morning.

Treasury debt prices eased after the import prices report amid fears the Federal Reserve may have to raise borrowing costs more aggressively than first thought.

Federal Reserve officials have said it appears the economy is not threatened by inflation. But Federal Chairman Alan Greenspan said on Tuesday policy-makers will do "what is required" to keep inflation in check if that view proves wrong.

The core Consumer Price Index, which strips out volatile food and energy prices, has risen at a 3 percent annual pace since the start of the year, marking a big pickup from last year's 38-year low 1.1 percent gain.

Within Thursday's report, the cost of petroleum product imports leaped 10.3 percent after falling a revised 0.4 percent in April. Excluding petroleum, import prices rose 0.4 percent in May.

Over the past 12 months, the price index for petroleum imports was up 43.9 percent, while overall import prices rose a more modest 7.0 percent.

COULD BE BETTER

Meanwhile, the number of Americans filing initial claims for jobless insurance rose unexpectedly last week, the Labor Department said, and the rolling average rose to its highest level since late April.

First-time claims for state unemployment benefits rose 12,000 to 352,000. Despite the rise in layoffs, economists still consider claims near the 350,000 level as a token of an improving labor market.

Wall Street analysts had forecast a fall in claims to 335,000 from a revised 340,000 the previous week. This was originally reported as 339,000.

"Jobless claims definitely missed expectations but (the report) still signifies job creation in the economy. Good but could be better," said Tim Mazanec, senior currency strategist for Investors Bank & Trust.

A Labor Department economist said government statisticians had taken the shortened workweek due to the Memorial Day holiday into consideration in the report.

The four-week moving average of filings, which smooths weekly fluctuations to provide a better picture of underlying trends, rose 4,750 to 346,000, the highest level since the week of April 24, when it was 346,500. The rolling average had hit its lowest level since late 2000 the week of May 15.