New White House Data Shows Inflation Gaps Between States [WATCH]

A new analysis from the White House Council of Economic Advisers finds inflation has run noticeably lower in conservative-led states than in liberal-led states over the past year — with the sharpest differences showing up 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.

The topline gap is clear: inflation averaged 2.5% in conservative-led states, compared with 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.

And the divide gets wider at the city level.

Metro areas in conservative states posted 1.9% year-over-year inflation, while metro areas in liberal states clocked in at 3% — a striking difference felt where people live, commute, and pay utility bills.

Energy costs are the biggest culprit.

In major liberal-run metros — including Baltimore, Chicago, Los Angeles, and New York — energy prices rose far faster than in cities located in conservative states. Energy and transportation together account for much of the inflation gap between metro areas.

When essentials like electricity, gasoline, and commuting get more expensive, households feel it immediately — even when price increases are modest.

Housing inflation remains high nationwide, but the data show prices still rising slightly faster in liberal-led states than in conservative-led ones.

White House economic director Kevin Hassett said Sunday the Trump administration is going all-in on housing affordability.

“Everybody in the whole Cabinet is working on trying to get housing to be more affordable,” Hassett told Fox News Sunday.

He said a sweeping proposal aimed at easing the burden on homebuyers is in the works — with details expected early in the new year

Watch the clip above.