Liberal states and cities inside liberal states have observed higher inflation rates in the past year than conservative counterparts.

A White House research report finds that state and local economic conditions cause deviations from the national inflation average and documents that, across multiple measures and aggregations, liberal states and cities within them experienced higher inflation over the past year than conservative counterparts. The report highlights housing supply elasticity as a mechanism: where housing supply is relatively inelastic, monetary or fiscal expansions tend to raise local prices (particularly rents) more than quantities.