Americans are facing the highest inflation rates in decades, making it harder for them to afford everyday goods and more expensive to raise their families. Each month coinciding with the Bureau of Labor Statistic’s release of the Consumer Price Index, JEC Republicans’ State Inflation Tracker estimates how much inflation increases costs for American families in each state and how the drivers of inflation continue to vary across the country. Specifically, we ask: how much more must the average household pay today to maintain the same standard of living it achieved in January 2021? January 2021 was chosen as the base month because early 2021 was the last time inflation was in line with recent historical norms. See our methodology for a full description of our methods and a downloadable data file with a detailed breakdown of inflation costs by state.

Prices increased tk percent from January 2021 to March 2022, costing the average American household $tk in March 2022 alone. Over the 12-month period from March 2022 through February 2023, the inflation that has already occurred will cost the average American household $tk even if prices stop increasing altogether.

Below we report inflation costs by state, inflation costs over time, and inflation costs within four major spending categories.

Inflation Costs by State

Figure 1 reports inflation costs by state, showing three separate statistics: (1) price growth since January 2021, (2) inflation costs imposed on American households in March 2022, and (3) the annual cost of inflation households will face from price increases that have already occurred (i.e., assuming no further price increases going forward).

Figure 1: Inflation Rates and Average Household Inflation Costs by State, March 2022, Relative to January 2021 Price Levels

Source: JEC Calculations using: Bureau of Economic Analysis, Personal Consumption Expenditures; Bureau of Labor Statistics, Consumer Expenditure Survey; Census Bureau; American Community Survey.
Notes: Inflation rates reflect how much prices have increased since January 2021, and inflation costs reflect how much more the average U.S. household must pay in the current month for the same goods and services it purchased in January 2021. See our methodology for a detailed explanation of these calculations.

As Figure 1 shows, inflation rates and inflation costs vary significantly across the United States. Families in the West (tk, tk, and tk) are facing the highest inflation rates, with prices today tk percent higher than in January 2021. Due to a combination of higher inflation rates and higher average household spending, inflation is imposing the greatest monthly costs on families in tk, tk, and tk. Annualized, these families are facing inflation costs of $tk, $tk, and $tk over the next year, respectively.

Although inflation is high everywhere, families in the Northeast (tk, tk, and tk) are facing relatively lower inflation rates with prices tk percent higher today than in January 2021. Similarly, families in tk, tk, and tk are facing the lowest inflation costs, however these costs are still substantial. Assuming prices stop increasing moving forward, families in these states would face $tk, $tk, and $tk in additional costs over the next year, respectively.

Inflation Costs Over Time

As inflation relative to January 2021 rises, so do the monthly costs to American families. Figure 2 details these costs each month, showing how they have increased over time in each state as well as in the United States overall. Use the drop-down box to see how inflation costs in each state compare to the U.S. average.

Figure 2: Average Monthly Household Inflation Costs by State, Relative to January 2021 Price Levels, January 2021 through March 2022

Source: JEC Calculations using: Bureau of Economic Analysis, Personal Consumption Expenditures; Bureau of Labor Statistics, Consumer Expenditure Survey; Census Bureau; American Community Survey.
Notes: Inflation costs reflect how much more the average U.S. household must pay for the same goods and services it purchased in January 2021. See our methodology for a detailed explanation of these calculations.

Inflation costs increased from $tk in February 2022 to $tk in March 2022 for the average American household, a $tk increase in monthly inflation costs. From February to March, inflation costs grew the most in tk ($tk), tk ($tk), and tk ($tk). Inflation costs grew by between $tk and $tk in the remaining states.

Inflation Costs by Category

Just as inflation costs vary by state and over time, they also vary across product categories. Households that spend disproportionately more on items whose prices increased the most face higher total inflation costs. Overall inflation costs reported above are calculated based on a set basket of goods and services purchased by the average American household.[1] Alternatively, category-specific inflation costs capture the added costs of purchasing specific categories of goods and services on the basis of their specific inflation rates.

Table 1 reports estimates of the additional costs American households face when they purchase items within four spending categories: food, shelter[2], transportation, and energy.[3]

In the United States overall, the spending category with the highest inflation costs is transportation, driven by rising auto and gas prices. Families in Tk are facing the highest transportation inflation costs ($tk); families in tk are facing highest food inflation costs ($tk); families in tk are facing the highest shelter inflation costs ($tk); and families in tk are facing the highest energy inflation costs ($tk).

Table 1: Average Monthly Household Inflation Costs by State and Spending Category, March 2022, Relative to January 2021 Price Levels

Source: JEC Calculations using: Bureau of Economic Analysis, Personal Consumption Expenditures; Bureau of Labor Statistics, Consumer Expenditure Survey; Census Bureau; American Community Survey.
Notes: Inflation costs reflect how much more the average U.S. household must pay for the same goods and services it purchased in January 2021. Category-specific inflation costs are the product of category-specific inflation rates and category-specific average household spending. See our methodology for a detailed explanation of these calculations.