*Though inflation has been easing, additional measures are necessary to lower living costs for Americans.
MadameNoire reports that the July Consumer Price Index (CPI-U) report, released on August 14, shows a 0.2% increase in prices excluding food and energy, up from 0.1% the previous month. Notable price hikes were seen in shelter, motor vehicle insurance, and education, while prices for used cars and medical care fell.
In the past year, the overall index increased by 2.9%, marking the smallest 12-month rise since March 2021. Meanwhile, the core index, which excludes food and energy, fell to 3.2%, the lowest increase since April 2021.
“If inflation goes down, it means that the rate at which prices increase is slowing down, but it generally is not going to mean that prices are going down,” William Hauk, an associate professor in the Department of Economics at the University of South Carolina, told CNBC.
Despite this cooling inflation, experts argue it may not significantly ease high costs for essentials like housing and food.
A 2022 survey highlighted financial hardships faced by Black Americans compared to white Americans, with higher levels of financial issues, emergency savings shortages, and eviction threats reported among Black adults.
Meanwhile, before abandoning his re-election bid, President Joe Biden said he planned to propose a 5% cap on annual rent increases for tenants of landlords to address housing affordability.
The proposal would target landlords who own 50 or more units, excluding units not yet constructed from the rent increase cap.
According to The Associated Press, Biden attributed inflation to companies seeking to maximize profits following the pandemic.
“It’s time things get back in order a little bit,” Biden said. “If I’m reelected, we’re going to make sure that rents are kept at 5% increase.”
READ MORE FROM EURWEB.COM: Biden Proposes 5% Cap on Annual Rent Increases in Effort to Address Inflation
The post Inflation Is Easing Slowly, But Prices Remain Elevated appeared first on EURweb.