January 15, 2025

WASHINGTON, D.C. - The December Consumer Price Index (CPI) report eveals that inflation remains stubbornly above the Federal Reserve’s 2% annual target, with the CPI rising 2.9% over the 12 months ending in December—a slight increase from November’s 2.7% annual gain. This marks the largest rise since July and the third consecutive month of increased inflation, following notable declines throughout 2023 and most of 2024. The latest figures signal a slowdown in progress toward curbing inflation.  

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“While we’ve seen meaningful progress in reducing inflation over the past year, this trend reminds us that economic recovery is not reaching all households evenly,” said Marisa Calderon, President and CEO of Prosperity Now. “Rising costs continue to burden families already struggling to make ends meet. Now more than ever, we must push for policies that ensure all communities have the resources they need to thrive.”

High prices and elevated mortgage rates are placing significant strain on the housing market, reducing affordability and sidelining prospective homeowners—particularly middle-income buyers. While other sectors of the economy have demonstrated resilience amid fluctuating inflation, the housing market remains a critical outlier.  

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“The ongoing challenges in the housing market are exacerbating long-standing disparities, making homeownership increasingly unattainable as a pathway to wealth-building for working families,” continued Calderon. “Rising prices and high mortgage rates have created a difficult landscape for those striving for stability and generational wealth through homeownership. We must prioritize policies that address these affordability challenges and ensure that everyone has a fair shot at achieving financial security.”

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As the nation transitions to a new administration, enacting policies that center the needs of working Americans is imperative. By doing so, we can build a more resilient economy where everyone has the opportunity to prosper. Prosperity Now remains committed to championing initiatives and policies that create pathways for economic opportunity and security for all.  

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