For Immediate Release:
February 12, 2025

Contact:
Lobna Hassairi (202) 250-9168
media@prosperitynow.org

Inflation Surges in January as Rising Housing and Grocery Costs Strain Household Budgets

WASHINGTON, D.C. - Inflation picked up speed in January, with the Consumer Price Index (CPI) [LINK] rising 0.5% from December, marking the largest monthly increase since August 2023. Over the past year, prices have increased 3%, highlighting that while inflation has cooled from its peak in 2022, progress remains uneven.  

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“While inflation has come down significantly from its height in 2022, prices for essential goods and services, from groceries to rent, continue to challenge American families,” said Marisa Calderon, President and CEO of Prosperity Now. “For many households, inflation isn’t just an economic indicator – it's a daily reality that affects their ability to afford basic necessities.”

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Housing and Food Prices Continue to Strain Household Budgets

Housing affordability remains a persistent challenge, with shelter costs rising 0.4% in January, accounting for nearly 30% of the overall increase in consumer prices. Rent and homeownership costs remain elevated, locking out many middle-income buyers and straining renters’ budgets.

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Meanwhile, grocery store prices rose 0.5%, following a 0.3% increase in December. The largest contributor was a 15.2% spike in egg prices—the sharpest monthly increase since 2015 – due to a bird flu outbreak that has disrupted supply. Overall, rising costs for essential goods like food and shelter continue to put financial pressure on households.  

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What This Means for Families

Higher inflation in key spending categories means that many households, especially those with lower and middle incomes, continue to face affordability challenges. While some prices, such as clothing and furniture, have stabilized or declined, essential expenses like food, rent, and transportation remain elevated.  

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“With inflation still unpredictable and core expenses rising, families need relief,” added Calderon. “Long-term solutions to increase housing supply and affordability, strengthen financial resilience, and expand economic opportunity are critical to helping people navigate today’s economic realities.”

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Prosperity Now remains committed to expanding housing affordability, strengthening financial well-being, and supporting pathways to economic mobility for all Americans.

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About Prosperity Now - Since 1979, Prosperity Now has been a trusted leader in strengthening financial security, expanding access to capital, and ensuring economic stability for businesses, families, and communities. We work across sectors to develop practical, scalable solutions that create lasting change. Through innovation, strategic investment, and collaboration, we build the infrastructure needed to sustain small business growth, housing opportunities, and financial well-being in an evolving economic landscape. Learn more at www.prosperitynow.org.

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