Prosperity Now Statement on Consumer Price Index

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• Housing & Homeownership

The index showed housing prices increased by 0.2%, remaining a major stumbling block for American families seeking security and economic stability. While energy prices decreased by 6.8% over the past year and food prices showed a modest 0.4% rise, housing continues to account for a significant portion of price pressure. In fact, housing and food together made up 75% of all price increases in the past month. The burden of housing costs remains a major hurdle for families striving to build wealth and achieve long term financial security through homeownership.

"Homeownership has long been one of the most reliable ways to build wealth in this country, but for far too many families it remains out of reach," said Marisa Calderon, President and CEO of Prosperity Now. "While it's encouraging to see inflation slow, we must ensure that economic gains translate into real opportunities for families to build a more secure financial future."

Calderon noted that years of elevated prices, coupled with rising interest rates, have made it difficult for many families across the housing market. This situation has compounded the long-standing issue of wealth inequality, as homeownership continues to be a key driver of generational wealth. The CPI report underscores the need for targeted action to ensure that more families can break into homeownership and leverage it as a tool for financial growth.

"These favorable trends in inflation do not mean our work is over. Too many families still face prices that are too high, making it difficult to achieve long-term financial security," stated Calderon. "We will continue to advocate for policies that make it easier for families to access affordable mortgages, secure stable housing, and ultimately build wealth through sustainable homeownership. The Federal Reserve's actions on interest rates are important, but more needs to be done to ensure these economic improvements lead to real changes in people's lives."

The CPI report reflects a mixed economic picture. While cooling inflation is a welcome development, American families are still feeling the effects of years of high prices following the pandemic. Rising wages have helped restore some purchasing power, but without addressing the underlying challenges in the housing market, many families will continue to struggle to find pathways to financial security.

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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 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.