What is driving the differences in inflation across U.S. regions?
Abstract: In this article, we explore differences in inflation dynamics across U.S. regions. Looking independently at the impact of consumption patterns and inflation by expenditure categories, we find that recent gaps across regions have existed largely because of different regional inflation rates for the housing category. Yet we also find that overall inflation is very highly correlated across regions.
Keywords: urban; rural; real estate; transportation;
JEL Classification: E31; R10; R21;
Provider: Federal Reserve Bank of Chicago
Part of Series: Chicago Fed Letter
Publication Date: 2023-05
Volume: no 478