#inflation-and-energy-prices

#inflation-and-energy-prices

Households cut back on their spending in April at the fastest pace in 18 months, as the conflict in the Middle East provoked fears of another cost of living crisis, a report from one of the UK's biggest banks has suggested. Barclays, which processes nearly 40% of the UK's credit and debit card transactions, said its data showed there had been a 0.1% fall in card spending last month compared with a year earlier. This was the first year-on-year fall since November 2024.

Changing expectations about the Fed's stance, a tense geopolitical backdrop, and the impact on inflationary risks have fuelled caution ahead of Chair Powell's comments. Yields and the dollar remain exposed to escalating tensions in the Middle East, as disruptions to energy infrastructure and key supply routes pushed oil prices higher, stoking inflation concerns.