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White House National Economic Council Director Kevin Hassett discusses President Donald Trump’s economic policies, inflation and more on “The Claman Countdown.”
FIRST ON FOX: An analysis by the White House Council of Economic Advisers finds that 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 uses year-over-year Consumer Price Index data from the Bureau of Labor Statistics through November 2025 and finds average inflation of 2.5% in states with conservative leadership compared to 3% in states with liberal leadership.
Since there is no official state-level CPI, CEA used regional inflation data and adjusted it based on each state’s population.
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The inflation gap is widening at the city level, with metropolitan areas in conservative states experiencing inflation of 1.9% year-over-year, compared to 3% in metropolitan areas in liberal states.
Energy inflation is a key driver of higher overall inflation in liberal-run cities. In large metropolitan areas such as Baltimore, Chicago, Los Angeles and New York, energy prices have risen much faster than in cities located in conservative states.
Energy and transportation costs together account for a large portion of the inflation gap between metropolitan areas.
When basic necessities like electricity, gas and commuting become more expensive, households quickly feel the consequences, even if prices only increase slightly.
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In the meantime, accommodation inflation remains high nationally. Yet prices rise slightly faster in liberal-leaning states than in conservative-leaning states.
Kevin Hassett, White House economic director said Sunday that the Trump administration take an all-hands-on-deck approach to combating the housing affordability crisis.
“Everyone in the Cabinet is working to make housing more affordable,” Hassett told “Fox News Sunday.”
Housing prices remain high across the country, according to CEA data. (Matthieu Busch/Bloomberg/Getty Images)
He said the administration is preparing a sweeping proposal to ease the burden on homebuyers, details of which are expected early in the new year.
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The CEA findings come as inflation remains a top concern among voters and as state and federal leaders debate energy, housing and transportation policies that directly affect the cost of living.
