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Jan 09, 2026

Study: Inflation Higher In Democrat-Run States

A new analysis from the White House Council of Economic Advisers reveals that inflation has been significantly lower in states led by conservative governments compared to those led by liberal governments over the past year. The most notable discrepancies have occurred in energy and transportation costs.

 

Reviewed by FOX Business, the analysis uses year-over-year Consumer Price Index data from the Bureau of Labor Statistics through November 2025.

 

The analysis found that inflation averaged 2.5% in states led by conservative governors, compared with 3% in states led by liberal governors.

Because the Bureau of Labor Statistics does not publish official state-level CPI data, the Council of Economic Advisers relied on regional inflation figures and adjusted them based on state population.

The disparity was more pronounced at the metropolitan level.

   

Metro areas in conservative-led states recorded 1.9% year-over-year inflation, while metro areas in liberal-led states posted 3%, a difference most evident in day-to-day expenses such as commuting and utility bills.

Energy costs accounted for much of the gap. In major liberal-run metro areas, including Baltimore, Chicago, Los Angeles, and New York, energy prices increased at a faster pace than in cities located in conservative-led states. Combined energy and transportation costs explained a significant share of the inflation difference between metro areas.

Rising costs for electricity, gasoline, and commuting tend to be felt quickly by households, even when overall price increases are relatively modest.

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