I have this problem Error: Too many re-renders. React limits the number of renders to prevent an infinite loop. with my useLocalStorage custom hook.

I can't find a solution, there is no use of useEffect or any loop in the code.

Here is the custom hook for useLocalStorage:

function useLocalStorage(itemName, initialValue) {

  const [item, setItem] = React.useState(initialValue);
  
  const localStorageItem = localStorage.getItem(itemName);
  let parsedItem;

  if (!localStorageItem) {
    localStorage.setItem(itemName, JSON.stringify(initialValue));
    parsedItem = initialValue;
  } else {
    parsedItem = JSON.parse(localStorageItem);
  }
  setItem(parsedItem);
  
  const saveItem = (newItem) => {
      const stringifiedItem = JSON.stringify(newItem);
      localStorage.setItem(itemName, stringifiedItem);
      setItem(newItem);
  };

  return {
    item,
    saveItem,
  };
}

export { useLocalStorage };

Here is the context provider, if I delete the line where I call useLocalStorage, the error disappears, so the problem is with the useLocalStorage.

import react from 'react';
import { useLocalStorage } from './useLocalStorage';
import * as utils from '../utils'; 

const AppContext = react.createContext();

function AppProvider(props) {

    const {
        item: expenses,
        saveItem: saveExpense,
    } = useLocalStorage('ITEMS_v1', []);

    const addExpense = (name, value, date) => {
        const newExpenses = [...expenses];
        newExpenses.push({
          name,
          value,
          date,
        });
        saveExpense(newExpenses);
      };

    const deleteExpense = (name) => {
        const expenseIndex = expenses.findIndex(expense => expense.name === name);
        const newExpenses = [...expenses];
        newExpenses.splice(expenseIndex, 1);
        saveExpense(newExpenses);
    };

    const today = utils.getToday();

    return (
    <AppContext.Provider value={{
        today,
        addExpense,
        deleteExpense,
    }}>
        {props.children}
    </AppContext.Provider>
  );
}

export { AppContext, AppProvider };