Notes from the Economy: Prices, Earnings, Unemployment Claims The Bureau of Labor Statistics (BLS) released data for inflation and real earnings this morning, while the Labor Department reported on unemployment insurance claims for the past week. Inflation: Consumer prices continue their steep advance as prices jumped 0.8 percent in July, pushing the annualized rate to 10.6 percent (yikes!). The jump in consumer prices was largely driven by food and energy, and when those items are subtracted inflation clocks in a high, but not scary, 3.5 percent.BLS Release: Consumer Price Index: July 2008 Commentary: Dean Baker at CEPR Real Earnings: Workers' pay took a hit in July as real average weekly earnings fell by 0.8 percent. The 0.3 percent increase in average hourly earnings couldn't keep up with the 0.3 decrease in aerage weekly hours and the 0.9 percent in prices.BLS Release: Real Earnings in July 2008 Unemployment Insurance Claims: Last week, 450,000 workers claimed unemployment insurance for the first time -- 10,000 fewer than the previous week. The four-week moving average of initial jobless claims rose to 440,500, an increase of 19,500 from the previous week's revised average of 421,000. Workers who continue to collect unemployment insurance advanced to 3,417,000, an increase of 114,000 from the previous week.Department of Labor Release: Unemployment Insurance Weekly Claims ReportCommentary: Andrew Samwick at Capital Gains and Games