The Changing Disparity in Prices Across States

Considine, Sabrina J.; Foerster, Andrew

Journal Article

The Changing Disparity in Prices Across States

Abstract: Differences in prices for consumer goods and services across states have been increasing since the early 2010s. Those differences accelerated during the pandemic and the subsequent inflation surge. Higher-price states saw faster inflation from 2019 to 2022 compared with lower-price states, leading price levels to diverge further across regions. Data show that state-level inflation was driven by both goods and services, which tended to move together rather than independently in most regions.