US presidential hopeful Kamala Harris announced a sweeping set of economic proposals to lower the cost of living on Friday.

"Look, the bills add up," Harris said while campaigning in North Carolina, a key battleground state.

"Food, rent, gas, back to school clothes, prescription medications. After all that, for many families, there's not much left at the end of the month."

Harris has pledged to impose "harsh penalties" on companies caught price gouging on groceries.

The proposal would call on the Federal Trade Commission to penalize "big corporations" it found engaging in price spikes. But it would sill need to pass through Congress first.

Harris also proposed a $25,000 (roughly €23,700) credit for some first-time home buyers and tax incentives to build new homes.

She also touted tax breaks for families, including a new child tax credit of up to $6,000 for families with newborns.

Trump and Harris lock horns over economy

Harris' proposals are a marked contrast to the economic plan of Donald Trump, who slammed Harris for what he called "Soviet-style communism."

"Kamala Harris has had three-and-a-half years in office and all she's done is break the economy. Kamala can't shake the stench of Bidenomics," the Trump campaign said.

However, inflation remains on a steady downward trend and the US economy has avoided a recession with strong job growth and record stock markets. Some effects of the COVID-related economic upheval remain, including higher food prices and high interest rates for home buyers.

Trump has instead proposed tariffs across the board, which the former president claims would boost the economy. Harris argued in North Carolina on Friday that the opposite was the case.

"He wants to impose what is in effect a national sales tax on everyday products and basic necessities that we import from other countries," Harris said. "That will devastate Americans."

"It will mean higher prices on just about every one of your daily needs: A Trump tax on gas. A Trump tax on food. A Trump tax on clothing. A Trump tax on over-the-counter medication."