This one thing is souring a lot of people on the economy

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There is plenty to like about the US economy right now. Inflation is cooling, wages are up and there are plenty of jobs. But many Americans just aren't feeling it.

That may have to do with their living situation.

Shelter costs, which include rent and an estimated cost of homeownership, are up 5.4% from a year ago. If you omit that metric from the Consumer Price Index inflation gauge, along with volatile food and energy costs, inflation is really about 1.9% -- the Federal Reserve's sweet spot.

But shelter isn't exactly optional (thanks Maslow), and those costs really, err, hit home, putting a damper on how Americans view the economy. Last month, consumer sentiment was at its lowest level since November and Fed Chair Jerome Powell says it may take "years" for housing inflation to normalize.

🏡 But there are early signs things may be improving. Click here for a full analysis from CNN Business senior writer Allison Morrow.

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Today’s PM Plug-In was produced by CNN’s Brendan Cosgrove, Janet Ahn and Matt Tettelbach.