Jobless claims hit lowest point in nearly four years; prices flat

Rather than a much-feared wave of post-holiday layoffs, first-time unemployment claims were at their lowest level in nearly four years.

Initial applications for jobless benefits slumped by 50,000 last week to 352,000, reaching a bottom not seen since April 2008, according to the Labor Department. Even the less-volatile four-week average was down, sliding 3,500 claims to 379,000.

Earlier this month, the government agency said that the national unemployment rate continued its multi-month drop in December to 8.5% -- the lowest point in nearly three years.

California, however, had one of the highest increases in unemployment claims for the first week of January, adding 22,168 amid layoffs in the service, agriculture and fishing sectors.

The Labor Department also released data showing that month-to-month consumer prices stayed steady in December, as they did in November.

Falling energy prices, including a 2% slip for gasoline, helped keep the Consumer Price Index flat. Prices for used and new vehicles and apparel were also down. However, food, shelter, recreation and medical care costs all rose.

And prices last year saw their largest jump since 2007, rising 3%, the agency said. Goods and services including airline fares, tobacco and education all increased.

Gasoline prices soared 9.9% over the year, pushing energy prices up 6.6% overall. As the cost of meat, beverages, bakery products and more soared, food prices spiked 4.7%, compared with 1.5% in 2010.