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What is driving the differences in inflation across U.S. regions?

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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.

Suggested Citation

  • Elainia Gupta & Leslie McGranahan, 2023. "What is driving the differences in inflation across U.S. regions?," Chicago Fed Letter, Federal Reserve Bank of Chicago, vol. 0, pages 1-8, May.
    • Handle: RePEc:fip:fedhle:96211
    DOI: 10.21033/cfl-2023-478
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    More about this item

    Keywords

    urban; rural; real estate; transportation;
    All these keywords.

    JEL classification:

    • E31 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Price Level; Inflation; Deflation
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand

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