Inflation, High Housing Costs Keep Economic Stability Out of Reach

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For Immediate Release:
December 12, 2024

Contact:
Lobna Hassairi (202) 250-9168
[email protected]

WASHINGTON, D.C. - The latest Consumer Price Index (CPI) report [LINK] reveals that consumer prices are up 2.7% for the 12 months ended in November, slightly above October's 2.6% rate. After cooling earlier in the year, inflation has remained persistent in recent months, driven in part by rising housing costs. High prices and mortgage rates have weighed heavily on the housing market, even as other sectors of the economy have shown resilience.

The index for all items, excluding food and energy, rose by 0.3% in November, consistent with increases seen over the past three months. Categories contributing to the uptick included shelter, used cars and trucks, household furnishings, medical care, new cars, and recreation. In contrast, the communication index was one of the few major indexes to experience a decline during the month. The food index increased 2.4% over the past year.

"Housing costs remain a major hurdle for millions of Americans, keeping economic stability out of reach for working families," said Marisa Calderon, President and CEO of Prosperity Now. "While some sectors of the economy have rebounded, the persistent challenges in the housing market underscore the urgent need for policies that address affordability and expand access."

The incoming administration has an opportunity to address the housing crisis head-on by adopting comprehensive and bold policies. Key measures include increasing investment in attainable housing, expanding access to down payment assistance programs, and enacting rental cost stabilization initiatives.

"We must turn voter demands into meaningful change that supports families, particularly those in marginalized communities," Calderon continued. "Housing affordability is central to achieving economic equity, and the time for action is now."

As the country transitions to new political leadership, Prosperity Now urges lawmakers to prioritize policies that foster economic opportunity for all Americans. Addressing housing affordability, promoting access to financial resources, and creating pathways to wealth-building opportunities are critical steps toward achieving a fairer and more resilient economy that works for everyone.

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About Prosperity Now -- Since 1979, Prosperity Nowhas been a persistent voice championing economic opportunity, innovating outside of and beyond existing systems to build power for all communities. We advance economic equity by investing in bold new ideas, and we work deeply at both the grassroots and national level to impact our entire financial ecosystem. By setting goals for our economy and following through with targeted approaches based on need, we are equipped to drive forward and cement big structural solutions. Learn more at www.prosperitynow.org.