As Americans grapple with rising costs, presidential candidates are presenting competing visions on a key campaign issue – the economy. 

While recent data indicates inflation is easing, the prices of essentials like food and housing remain stubbornly high. Vice President Harris and former President Trump offer contrasting approaches to address these ongoing challenges.

The latest round of data from the Consumer Price Index shows that prices are still rising even after the huge spikes over the past few years. But the rate of inflation finally dropped below 3% for the first time in three years, offering a glimmer of hope that the increases might finally be leveling off as millions of Americans struggle to make ends meet. Prices for energy, new and used cars, and clothing have actually dropped a bit. 

"I told you we were going to have a soft landing, my policies are working," said President Biden. 

However, over the past year, rent and housing costs have increased by 5%, alongside rising grocery prices, energy costs, and insurance rates. So, while inflation may be cooling, the burden of everyday essentials remains. 

"The rent is ridiculous," said one person struggling with housing in Norfolk, Virginia. 

Another person told CBN News they use two, sometimes three paychecks to make the rent. Despite these struggles, Americans continue to spend. Retail sales saw a surprising 1% increase last month, and online shopping surged more than 6% compared to last year.

A shopper walks through a supermarket as grocery price inflation continues. (Press Association via AP Images)

"We're left with a situation where prices are continuing to rise," said Mark Hamrick, Washington Bureau Chief for Bankrate. "That means they have risen about 20% since early January 2020, that's a lot. That's historically high inflation, but they're not rising as much recently. So that gives us hope that the worst of the inflation trend is behind us."

While former President Trump recently suggested the economy might not be the top issue on the minds of voters, he did lament the high cost of food. 

"When you look at the cost of groceries, the cost of bacon, where it went up four and five times," Trump said. "Bacon, I don't order bacon anymore, it's too expensive." 

Vice President Harris is vowing to set a ban on food and grocery price gouging as part of her economic plan, while also proposing up to $25,000 in down payment support for first-time homebuyers. 

Trump criticized the proposal in a Thursday press conference focused on the economy. "Now, Kamala is proposing communist price controls," said Trump. "If they worked I'd go along with it but it has the opposite impact and effect."

He also blasted the Biden administration's record on the economy and promised to reverse those policies if he wins.

Republican presidential nominee former President Donald Trump talks after a news conference at Trump National Golf Club, Thursday, Aug. 15, 2024, in Bedminster, N.J. (AP Photo/Julia Nikhinson)

Hamrick says the complexity of the economic landscape requires more than political promises. 

"It's my hope and prayer, as an economic analyst and as an American, that we'll see a higher level of political discourse in our country, not only in the coming months and years but also in how we address and resolve some of these very serious issues—many of which are ultimately systemic," Hamrick said. "They are not just a function of short-term movements in the economic cycle, but rather issues that have developed over the course of many, many years. At the top of the list: affordability challenges, the funding of higher education, and serious immigration reform, as many Americans would like to see the steady stream of immigrants entering the United States addressed as well."

Thursday, Biden and Harris announced an agreement with drugmakers to lower the costs of 10 prescription drugs under Medicare. Harris is expected to outline her economic vision in North Carolina Friday. 

President Joe Biden listens as Democratic presidential nominee Vice President Kamala Harris speaks about the administration's efforts to lower costs during an event at Prince George's Community College in Largo, Md., Aug. 15, 2024. (AP Photo/Susan Walsh)

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