Inflation Stabilizes, But Rising Housing Costs Persist

Share:

• Housing & Homeownership

For Immediate Release:
November 13, 2024

Contact:
Brad Bauman (202) 520-2155
[email protected]

WASHINGTON, D.C. - Today's Consumer Price Index (CPI) data reveal promising signs that overall inflation remains steady, with the annual rate nudging up slightly to 2.6% from 2.4% last month. This small increase aligns with the previous two months, indicating some consistency in inflation trends. However, the index for shelter rose by 0.4%, underscoring that housing costs continue to be a central challenge in efforts to control price increases. The 0.2% uptick in the Consumer Price Index for all Urban Consumers (CPI-U) last month signals that achieving affordability goals remains an elusive priority.

The rise in housing costs amounted for more than half of the monthly increase in all items, demonstrating a major stumbling block for American families seeking financial security. Meanwhile, energy prices held steady with a 6.8% decrease over the past year, and food prices showed a 0.2% rise.

"While inflation's slowdown is encouraging, we must ensure these economic gains lead to real, attainable pathways for families to build long-term financial security, particularly through homeownership," said Marisa Calderon, President and CEO of Prosperity Now.

The latest CPI report highlights the need for focused efforts to make homeownership a more accessible means for families to achieve financial growth. Years of high interest rates and sustained price increases have created significant barriers for families trying to enter the housing market, further exacerbating the persistent issue of wealth inequality, as homeownership remains a critical driver of generational wealth.

"During this time of political transition, Prosperity Now urges lawmakers to take concrete steps to advance policies that make it easier for families to access affordable mortgages, provide secure housing options, and enable wealth-building through sustainable homeownership," added Calderon. "Positive trends in inflation as a result of the Federal Reserve's recent actions on interest rates are a good start, but more actions need to be taken to ensure these economic improvements positively impact the lives of American families."

###

About Prosperity Now -- Since 1979, Prosperity Now has been a persistent voice championing economic opportunity, innovating outside of and beyond existing systems to build power for all communities. We advance racial and ethnic economic justice by investing in bold new ideas, and we work deeply at both the grassroots and national level to impact the entire 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.