Inflation in liberal states higher than in conservative states, WH says

FIRST FOR FOX: Inflation has been lower in conservative-led states than liberal-led states over the past year, with the biggest differences in energy and transportation costs, according to an analysis by the White House Council of Economic Advisers.

The analysis, reviewed by FOX Business, is based on annual consumer price index data from the Bureau of Labor Statistics through November 2025, and shows inflation averaging 2.5% in conservative-led states compared to 3% in liberal-led states.

In the absence of an official state-level CPI, the CEA used regional inflation data and adjusted for each state’s population.

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The inflation gap widens at the city level, with inflation in metros in conservative states at 1.9% per year compared to 3% in metros in liberal states.

Energy inflation is one of the biggest drivers of higher headline inflation in liberal cities. In large metro areas such as Baltimore, Chicago, Los Angeles and New York, energy prices rose much faster than cities in conservative states.

Energy and transport costs together make up a large part inflation the gap between metro areas.

When essentials such as electricity, gas and commuting become more expensive, households feel the impact quickly – even if prices rise only slightly.

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meanwhile residence inflation is still high throughout the country. Still, prices are rising slightly faster in liberal-led states than in conservative-led states.

White House Chief Financial Officer Kevin Hassett said Sunday that the Trump administration embraces an all-hands-on-deck solution to the housing affordability crisis.

« Everyone across the cabinet is working to try to make housing more affordable, » Hassett told Fox News Sunday.

He said the administration is preparing a broad proposal to ease the burden on homebuyers, with details expected early this year.

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CEA’s findings come as inflation remains a top concern for voters and as state and federal leaders debate energy, housing and transportation policies that directly affect the cost of living.