Inflation is at a three-year high — and now many Americans are burning through their savings | CNN Business

High gas prices pushed up inflation again last month while adding to Americans’ financial strain: Households are saving at the lowest rate in nearly four years, a new report showed Thursday. The Iran war’s oil price shock lifted the Federal Reserve’s preferred inflation gauge to 3.8% in April from 3.5% the month before, according to Commerce Department data. The Personal Consumption Expenditures price index rose 0.4% on a monthly basis, slowing from a 0.7% increase in March. Consumer spending, which powers about two-thirds of the economy, rose 0.5% in April – a seemingly resilient but slower pace than the 1% jump in March. When taking inflation into account, however, spending rose just 0.1%. Americans’ wallets – many fatter from bigger tax refunds – have been able to absorb the fuel price shock; however, economists have warned that they eventually wouldn’t be able to keep up with climbing costs. ‘I’ve never felt poor before’: Inflation and higher gas prices are stretching workers to their limit Thursday’s data exposed some of that underlying fragility. “Households are feeling the pinch from higher inflation now,” Kathy Bostjancic, chief economist at Nati