Americans seem to be burning through their savings at an alarming pace,

and with inflation climbing to its highest level in roughly three years,

financial pressure is starting to build.

I'm Kathy Fedke, and this is Real Estate News for investors.

This is Real Estate News with Kathy Fedke.

New data from the Commerce Department shows that inflation rose in April, driven largely by higher energy costs.

The Federal Reserve's preferred inflation measure, known as the Personal Consumption Expenditures Index, or PCE, increased to 3.8% from a year ago. According to CNN, that puts inflation at roughly its highest level in three years.

At the same time, Americans are feeling more financial strain. Personal income was flat in April.

After tax income declined, and when adjusted for inflation, disposable income fell

by half a percent. Consumers are also saving less. The personal savings rate dropped to 2.6 percent,

down from 4.3 percent at the start of the year. Economists say many households are spending more

than they have coming

in as rising prices continue to squeeze budgets. Consumer spending did increase by a half a percent

in April, but once inflation is taken into account, spending rose just 0.1%. Much of that spending

went toward essentials like fuel, utilities, housing, and food.

For real estate investors, these are important trends to watch.

Rising costs and shrinking savings can put additional pressure on household finances

at a time when affordability is already a challenge.

The report also showed that core inflation,

which excludes food and energy prices, rose to 3.3% annually. Economists point to higher energy

costs and tariffs as factors keeping inflation above the Fed's 2% target. That could mean interest rates stay higher for longer. Economist Kathy

Bostjansik of nationwide says inflation remains too high for the Federal Reserve to consider

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