New White House data reviewed by FOX Business shows Americans in liberal-led states are paying higher prices. Inflation is consistently lower in conservative-led states across the country.
An analysis from the White House Council of Economic Advisers found inflation averaged 2.5 percent in conservative-led states over the past year. In liberal-led states, inflation averaged 3 percent.
The analysis used year-over-year consumer price data from the Bureau of Labor Statistics through November 2025. There is no official state-level Consumer Price Index.
Because of that limitation, the Council of Economic Advisers relied on regional inflation data. The figures were adjusted based on each state’s population.
The inflation gap becomes larger at the city level. Metro areas in conservative states saw 1.9 percent year-over-year inflation. Metro areas in liberal states recorded 3 percent inflation.
Energy prices are one of the main drivers of the difference. Cities such as Baltimore, Chicago, Los Angeles, and New York saw much faster energy price increases.
Transportation costs also contributed to the gap. Together, energy and transportation explain much of the difference between metro areas.
When electricity, gasoline, and commuting costs rise, families feel the impact quickly. Even small increases can strain household budgets.
Housing inflation remains high nationwide. 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 using an all-hands-on-deck approach. He said every Cabinet agency is focused on lowering housing costs.
Speaking on Fox News Sunday, Hassett said the administration is preparing a sweeping housing proposal. Details are expected early in the new year.
The Council of Economic Advisers’ findings come as inflation remains a top voter concern. The data has renewed debates over energy, housing, and transportation policies that directly affect the cost of living.