Inflation in liberal states higher compared to conservative ones, WH says

First on Fox: An analysis by the White House Council of Economic Advisers finds that inflation was lower in conservative-led states than in liberal-led states over the past year, with larger gaps in energy and transportation costs.

The analysis, reviewed by FOX Business, is based on year-over-year CPI data from the Bureau of Labor Statistics through November 2025, and finds inflation averages 2.5% in conservative-led states versus 3% in liberal-led states.

Since there is no official state-level CPI, the CEA used regional inflation data and adjusted it based on each state’s population.

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The inflation gap widens at the city level, with urban areas in conservative states seeing inflation of 1.9% year-on-year, compared to 3% in urban areas in liberal states.

Energy inflation is one of the biggest drivers of higher overall inflation in cities run by Liberals. In major metro areas like Baltimore, Chicago, Los Angeles and New York, energy prices have risen much more quickly than in cities in conservative states.

Together, energy and transportation costs account for a large portion of the inflation gap between metro areas.

When basics like electricity, gas, and transportation become more expensive, families feel the impact quickly – even if prices rise slightly.

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Meanwhile, Housing Inflation remains high nationally. However, prices are rising slightly faster in liberal-led states than in conservative-led states.

The Trump administration is taking a comprehensive approach to addressing the housing affordability crisis, White House economic director Kevin Hassett said Sunday.

“Everyone in the entire Cabinet is working on trying to make housing more affordable,” Hassett told “Fox News Sunday.”

He said the administration is preparing a comprehensive proposal aimed at easing the burden on homebuyers, details of which are expected early in the new year.

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