Consumer spending, inflation on the rise

? Consumers spent at a strong pace in April, but much of their money went to fill up their gas tanks. Soaring gas prices sent consumer confidence plunging while an inflation gauge closely watched by the Federal Reserve rose by the largest amount in 13 months.

The Commerce Department reported Friday that consumer spending jumped 0.6 percent last month, the biggest increase since a 0.8 percent rise in January. However, when inflation – reflecting $3 and more for a gallon of gas – was removed, the increase in spending was a much smaller 0.1 percent.

An inflation reading tied to the personal spending report showed core inflation – excluding food and energy – rose 2.1 percent in April compared with the same month a year ago. That’s the biggest such increase in 13 months and it moves inflation above the Fed’s comfort zone of 1 percent to 2 percent.