U.S. consumer credit rose more than expected in April as Americans maintained a strong pace of credit card usage to fund purchases at a time of high inflation, data showed on Tuesday.

Total consumer credit increased by $38.07 billion after rising by a downwardly revised $47.34 billion in March, the Federal Reserve said. Economists polled by Reuters had expected consumer credit to rise by $35 billion after a previously reported $52.43 billion advance in March.

Annual consumer prices are rising at rates last seen 40 years ago, leaving many households scrambling to cover expenses.

Revolving credit, which mostly measures credit-card use, increased by $17.78 billion after rising by $25.63 billion in the prior month. The strong credit card usage together with massive savings are helping to keep consumer spending solid even as inflation is eroding wage gains.

"While increased reliance on consumer credit cards is not a sustainable long-term driver of consumer spending, the available credit does help provide at least some short term relief during a time when gasoline prices are daily breaking record highs," said Tim Quinlan, a senior economist at Wells Fargo in Charlotte, North Carolina.

"However, credit is more than just a symptom of pain at the pump, for many low- and middle-income consumers the accessibility of credit helps during those times when the paycheck is already stretched thin."

Nonrevolving credit, which includes auto loans as well as student loans made by the government, increased by $20.30 billion in April, the Fed data showed. That followed a $21.71 billion increase in March.

"Moving forward, this segment is likely to soften further as rising interest rates weigh on demand for vehicles," said Shandor Whitcher, an economist at Moody's Analytics in West Chester, Pennsylvania.

But the reliance on credit cards as borrowing costs rise could pose a challenge for consumers down the road. Thus far many measures of consumers monthly or quarterly debt obligations as a share of income remain near record lows. The Federal Reserve is raising rates to combat inflation.

"While credit can help bolster spending today, it can come at the expense of healthier household financials tomorrow," said Wells Fargo's Quinlan.