Fourth Stimulus Check Update: Direct Payments 'More Useful' Amid Inflation, New Deposits

While many states are sending out new versions of stimulus payments to help residents cope with the pain of inflation, calls for more aid are continuing to grow, as experts claim that money being given directly to the people will be a better option than other forms of relief as high prices still linger and threaten many families' budgets and bottom lines.

While there has been some concern that more stimulus aid would only make inflation worse, because more money being handed to U.S. citizens to spend would increase demand on a still choked supply chain, raising prices, some are still arguing that they are a good thing. In fact, compared to other forms of relief offered, like tax rebates and cuts, some experts argue that they can do more when families are struggling.

"Giving direct aid, direct payments is far more useful than doing income tax cuts, or gas tax holidays," Lucy Dadayan, senior research associate at the Urban-Brookings Tax Policy Center told Yahoo! Finance.

This sentiment comes as several states send some form of rebate to their residents, usually through a surplus in their state budgets. These are coming at the same time that the pain of inflation is being felt harder in certain areas, with higher price increases on everything from homes to gasoline, to food.

Information from the Consumer Price Index in August showed sharp increases in the price of several food items, with eggs seeing a 39.8% increase in price, with butter, flour and prepared flour mixes also seeing increases over 20% year-over-year. Increases over 15% were also seen in roasted coffee, frankfurters, lunchmeat, fresh and frozen chicken parts, fresh milk other than whole, cereals and cereal products, white bread, sugar, rice, pasta, cornmeal, peanut butter, fruits and veggies, prepared salads and canned fruits and vegetables.

This comes as prices have also started to climb once again on gas, after a steady decrease over several months. A slight rise in prices came along with Hurricane Ian as it made landfall in Florida. The uptick caused President Joe Biden to also issue a warning to oil and gas companies who may seek to profit from the destruction and raise prices significantly, a practice known as price gouging.

"Do not use this as an excuse to raise gasoline prices or gouge the American people," he said in a speech at the White House.