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US Consumer Spending Ticks Higher as Inflation Hits Highest Level Since 2023

U.S. consumer spending rose modestly in April as inflation accelerated to its highest level since 2023, driven by surging energy costs amid Middle East conflict. Inflation-adjusted consumer expenditures climbed 0.1% for the month, signaling continued household demand despite mounting price pressures. The annual inflation rate reached 3.8%, marking a sharp uptick from prior months. Core inflation, which excludes volatile food and energy components, held steady at 3.3% annually. The surge reflects global oil price shocks stemming from the Iran war, prompting central banks worldwide to reassess monetary policy stances. The data underscores the delicate balance policymakers face in managing economic growth against persistent inflationary headwinds. Elevated energy costs continue to pressure fuel surcharges and transportation expenses for freight and logistics operators.