FIRST ON FOX: An analysis from the White House Council of Economic Advisers finds inflation has been lower in conservative-led states than in liberal-led states over the past year, with the largest gaps in energy and transportation costs.
Reviewed by FOX Business, the analysis draws on year-over-year consumer price index data from the Bureau of Labor Statistics through November 2025 and finds inflation averaging 2.5% in conservative-led states versus 3% in liberal-led states.
Because 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 divide widens at the city level, with metro areas in conservative states seeing 1.9% year-over-year inflation, versus 3% in metro areas located in liberal states.
Energy inflation is one of the biggest drivers of higher overall inflation in liberal-run cities. In major metro areas such as Baltimore, Chicago, Los Angeles and New York, energy prices increased far more rapidly than in cities located in conservative states.
Energy and transportation costs together account for much of the inflation gap between metro areas.
When essentials like electricity, gas, and commuting get more expensive, households feel the impact quickly – even if prices rise only slightly.
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Meanwhile, housing inflation remains elevated nationwide. Still, prices are rising slightly faster in liberal-led states than in conservative-led states.
White House economic director Kevin Hassett said Sunday that the Trump administration is taking an all-hands-on-deck approach to tackling the housing affordability crisis.
"Everybody in the whole Cabinet is working on trying to get housing to be more affordable," Hassett told "Fox News Sunday."
He said the administration is preparing a sweeping proposal aimed at easing the burden on homebuyers, with details expected early in the new year.
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The CEA's findings come as inflation remains a top voter concern and as state and federal leaders debate energy, housing, and transportation policies that directly affect the cost of living.
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