By Elizabeth Dilts Marshall

NEW YORK, (Reuters) – Bank of America (NYSE) reported Thursday that debit card and credit card purchases rose for all income levels in April. However spending by lower-income customers seemed to have fallen in recent weeks.

Due to dramatic increases in travel and entertainment spending, the bank reported that total debit- and credit card usage rose by 13% in April as compared with the previous year.

Card spending per household rose by almost 24% in the same time frame in 2019 before the pandemic. Spending for those with less than $50K in an annual income rose 33%.

Inflation in America has caused the cost of daily goods, such as some foodstuffs, to rise by double-digit rates. Spending trends can be a key indicator of consumer’s financial health.

Credit rating agencies, bank executives and financial analysts say the average consumer is healthy with a high level of checking account balances, low debt, and a good credit score. But, there is evidence that consumers who have lower incomes and credit scores may be being affected by high prices.

Bank of America’s data showed that consumption levels have risen to levels not seen before the COVID-19 pandemic.

In April, total payments were 25 percent higher than last year. This was due to tax payments at the mid-month. Last year’s tax payments did not come due until May 21, because the U.S. Internal Revenue Service granted a rare extension.

David Tinsley, Director at the Bank of America Institute wrote that while higher inflation can lead to increased spending it is evident consumer strength does not.”