Custom post type permalink not working (404)

I have the following code

$itemlabels = array(
			'name' 					=>  _x('Items', 'post type general name', WPDEV_THEME_TEXTDOMAIN),
			'singular_name' 		=> _x('Item', 'post type singular name', WPDEV_THEME_TEXTDOMAIN),
			'add_new' 				=> _x('Add Item', 'classsified', WPDEV_THEME_TEXTDOMAIN),
			'add_new_item' 		=> __('Add New Item ', WPDEV_THEME_TEXTDOMAIN),
			'edit_item' 				=> __('Edit Item', WPDEV_THEME_TEXTDOMAIN),
			'new_item' 				=> __('New Item', WPDEV_THEME_TEXTDOMAIN),
			'view_item' 				=> __('Visit item page', WPDEV_THEME_TEXTDOMAIN),
			'search_items'			=> __('Search Item', WPDEV_THEME_TEXTDOMAIN),
			'not_found' 				=> __('No items found', WPDEV_THEME_TEXTDOMAIN),
			'not_found_in_trash'	=> __('No items in trash', WPDEV_THEME_TEXTDOMAIN),
			'parent_item_colon' 	=> '',
			'menu_name' 			=> __('Marketplace', WPDEV_THEME_TEXTDOMAIN)
	);
	$itemargs = array(
			'labels' 					=> $itemlabels,
			'taxonomies'			=> array('category'),
			'public' 					=> true,
			'publicly_queryable'	=> true,
			'show_ui' 				=> true,
			'menu_icon'				=> (get_bloginfo('template_url') . '/images/market-icon.png'),
			'show_in_menu' 		=> true,
			'query_var' 				=> true,
			'capability_type' 		=> 'post',
			'has_archive' 			=> true,
			'hierarchical' 			=> false,
			'rewrite'					 => array('slug' => 'product'),
			'menu_position' 		=> 7,
			'supports'		    	=> array('title', 'author', 'editor', 'custom-fields', 'thumbnail')
	);

Registers the post type, assigns the taxonomy – but the permalink (e.g. https://example.com/product/new-item-2/) ALWAYS goes to 404 page!

It is a WP bug – or it’s only me?