Price differences across U.S. states and regions widened during the pandemic years. In our Economic Letter, “The Changing Disparity in Prices Across States,” we find that states with above average price levels before the pandemic generally saw higher inflation from 2019 to 2022 than states that had below average price levels.
Watch our Economic Letter video with Andrew Foerster, senior research advisor, to learn how inflation and price levels relate across states.
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The views expressed here do not necessarily reflect the views of the management of the Federal Reserve Bank of San Francisco or of the Board of Governors of the Federal Reserve System.
About the Authors
Sabrina Considine is a research associate in the Economic Research Department at the Federal Reserve Bank of San Francisco.
Andrew Foerster is a senior research advisor in the Economic Research Department at the Federal Reserve Bank of San Francisco. Learn more about Andrew Foerster