The number of U.S. workers filing new unemployment benefit claims climbed more than expected last week.

The total number of unemployed drawing jobless benefits also rose, to a record 6.56 million,

Initial claims for state jobless benefits increased 32,000 to 637,000 in the week ended May 9, the U.S. Labour Department said in a weekly report Thursday.

Wall Street economists had expected a 10,000-claim increase to a level of 611,000. The prior week’s level was revised to 605,000 from a previously estimated 601,000.

The four-week average, which aims to smooth volatility, rose by 6,000 to 630,500.

Separately, U.S. producer prices climbed in April more than expected because of a jump in food costs, but core wholesale inflation rose only mildly as the recession robs companies of pricing power.

The producer price index for finished goods increased a seasonally adjusted 0.3%, the U.S. Labor Department said. The PPI fell 1.2% in March.

Economists expected prices would increase 0.1% in April.

The core PPI, which excludes food and energy costs, inched 0.1% higher last month from March. Economists expected a 0.1% increase.

IE