This Is the State That Has Been Hit Hardest by Inflation

Since the start of the COVID-19 pandemic, the overall cost of living has surged in the United States. The average cost of goods and services surged by 4.7% in 2021, by 8.0% in 2022, and by over 4% again in 2023. While the consumer price index has fallen slightly in recent months, it remains well above the Federal Reserve’s 2% target.

24/7 Wall St. Key Points:

• Inflation, as measured by the consumer price index, hit historic highs in recent years. 
• While Americans across the country are feeling the pinch, in certain states, prices appear to have climbed even faster than they did nationwide.
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At the most fundamental level, historic levels of inflation were fueled, in part, by pandemic-related supply constraints and increased consumer demand. Even though these imbalances have been largely corrected, Americans across the country are still living with the consequences, as goods and services are generally far more expensive today than they were only a few years ago.

The real world effects of inflation are perhaps most clearly reflected in the housing market. According to data from Realtor.com, the typical American home on the market in February 2025 was listed for $412,000, about 23% more than the median list price of $335,000 reported at the beginning of 2021.

While no corner of the country was spared from the effects of inflation, prices in certain states appear to have climbed far faster than they did nationwide, on average.

Using regional price parity, or RPP, data from the Bureau of Economic Analysis, 24/7 Wall St. identified the states hit hardest by inflation. Our ranking is based on the change in RPP between 2020 and 2023. RPP is an index that reflects the average price of goods and services relative to average prices nationwide. All supplemental data in this story is also from the BEA.

It is important to note that the price changes in this story are not a reflection of absolute price change, but rather, price change relative to the national average. For example, the national benchmark for the average price of goods and services is set at 100 every year. This means that if a given state has an RPP of 105, goods and services are 5% more expensive in that state than they are on average nationwide. If, in the following year, that same state’s RPP rises to 106, then prices in that state rose faster than they did nationwide. Similarly, if that state’s RPP remains at 105 year-to-year, prices are moving at the same rate as they are across the U.S. as a whole.

Among the 20 states on this list, consumer prices, as indicated by the RPP index, climbed anywhere from about 0.1 to 2.8 percentage points faster than they did nationwide, on average, between 2020 and 2023.

In half of the states on this list, faster than average increases in the cost of living were driven by housing. In the remaining 10 states, the rise in RPP was led by increases in utilities or services prices. (Here is a look at how ongoing inflation could impact your retirement.)

Notably, despite reporting the highest price increases in the country, many of these states are still relatively affordable places. In three southern states on this list, goods and services are still at least 10% less expensive, on average, than they are across the United States.

In other states, rising costs may have had more meaningful implications. In Arizona, for example, goods and services were about 0.8% less expensive than average in 2020. However, as of 2023, the latest year of available data, the cost of living in Arizona was 1.1% higher than it was nationwide. (Here is a look at the voters most likely to approve of Trump’s economic policies.)

These are the states that were hit hardest by inflation.

Why it Matters

The U.S. has only recently emerged from the worst inflationary era since the early 1980s. Even though the rate of inflation has cooled, consumer prices remain elevated, and Americans are feeling the pinch. While the impact of inflation has been felt across the country, in certain states, prices appear to have climbed even faster than they did nationwide in recent years.

20. New Hampshire

• Relative change in overall cost of living from 2020 to 2023: 0.07 percentage points faster than national increase
• Overall cost of living in 2023: 5.35% higher than U.S. average
• Overall cost of living in 2020: 5.27% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: -1.67 percentage points
• Relative change in services prices from 2020 to 2023: +1.33 percentage points
• Relative change in housing prices from 2020 to 2023: -1.20 percentage points
• Relative change in utilities prices from 2020 to 2023: +11.67 percentage points

19. Alaska

• Relative change in overall cost of living from 2020 to 2023: 0.37 percentage points faster than national increase
• Overall cost of living in 2023: 1.72% higher than U.S. average
• Overall cost of living in 2020: 1.35% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: -1.21 percentage points
• Relative change in services prices from 2020 to 2023: -0.50 percentage points
• Relative change in housing prices from 2020 to 2023: +6.94 percentage points
• Relative change in utilities prices from 2020 to 2023: -16.09 percentage points

18. Idaho

• Relative change in overall cost of living from 2020 to 2023: 0.41 percentage points faster than national increase
• Overall cost of living in 2023: 8.58% lower than U.S. average
• Overall cost of living in 2020: 8.98% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: -1.41 percentage points
• Relative change in services prices from 2020 to 2023: -2.69 percentage points
• Relative change in housing prices from 2020 to 2023: +10.47 percentage points
• Relative change in utilities prices from 2020 to 2023: -6.98 percentage points

17. Indiana

• Relative change in overall cost of living from 2020 to 2023: 0.42 percentage points faster than national increase
• Overall cost of living in 2023: 7.82% lower than U.S. average
• Overall cost of living in 2020: 8.23% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: -0.13 percentage points
• Relative change in services prices from 2020 to 2023: +0.06 percentage points
• Relative change in housing prices from 2020 to 2023: +0.37 percentage points
• Relative change in utilities prices from 2020 to 2023: -3.73 percentage points

16. Wisconsin

• Relative change in overall cost of living from 2020 to 2023: 0.43 percentage points faster than national increase
• Overall cost of living in 2023: 6.90% lower than U.S. average
• Overall cost of living in 2020: 7.33% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: -0.90 percentage points
• Relative change in services prices from 2020 to 2023: +0.26 percentage points
• Relative change in housing prices from 2020 to 2023: +3.00 percentage points
• Relative change in utilities prices from 2020 to 2023: -4.21 percentage points

15. California

• Relative change in overall cost of living from 2020 to 2023: 0.64 percentage points faster than national increase
• Overall cost of living in 2023: 12.58% higher than U.S. average
• Overall cost of living in 2020: 11.94% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.85 percentage points
• Relative change in services prices from 2020 to 2023: +2.90 percentage points
• Relative change in housing prices from 2020 to 2023: -8.49 percentage points
• Relative change in utilities prices from 2020 to 2023: +8.34 percentage points

14. Minnesota

• Relative change in overall cost of living from 2020 to 2023: 0.67 percentage points faster than national increase
• Overall cost of living in 2023: 1.58% lower than U.S. average
• Overall cost of living in 2020: 2.25% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +2.69 percentage points
• Relative change in services prices from 2020 to 2023: -0.20 percentage points
• Relative change in housing prices from 2020 to 2023: -0.03 percentage points
• Relative change in utilities prices from 2020 to 2023: -1.30 percentage points

13. Washington

• Relative change in overall cost of living from 2020 to 2023: 0.69 percentage points faster than national increase
• Overall cost of living in 2023: 8.56% higher than U.S. average
• Overall cost of living in 2020: 7.87% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: -2.26 percentage points
• Relative change in services prices from 2020 to 2023: +3.96 percentage points
• Relative change in housing prices from 2020 to 2023: -0.61 percentage points
• Relative change in utilities prices from 2020 to 2023: -12.71 percentage points

12. Kentucky

• Relative change in overall cost of living from 2020 to 2023: 1.38 percentage points faster than national increase
• Overall cost of living in 2023: 9.53% lower than U.S. average
• Overall cost of living in 2020: 10.92% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.75 percentage points
• Relative change in services prices from 2020 to 2023: +1.95 percentage points
• Relative change in housing prices from 2020 to 2023: -1.94 percentage points
• Relative change in utilities prices from 2020 to 2023: +4.94 percentage points

11. Oregon

• Relative change in overall cost of living from 2020 to 2023: 1.48 percentage points faster than national increase
• Overall cost of living in 2023: 4.72% higher than U.S. average
• Overall cost of living in 2020: 3.25% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: -0.00 percentage points
• Relative change in services prices from 2020 to 2023: +3.83 percentage points
• Relative change in housing prices from 2020 to 2023: -1.00 percentage points
• Relative change in utilities prices from 2020 to 2023: -4.19 percentage points

10. Mississippi

• Relative change in overall cost of living from 2020 to 2023: 1.71 percentage points faster than national increase
• Overall cost of living in 2023: 12.71% lower than U.S. average
• Overall cost of living in 2020: 14.42% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.24 percentage points
• Relative change in services prices from 2020 to 2023: +3.02 percentage points
• Relative change in housing prices from 2020 to 2023: -0.41 percentage points
• Relative change in utilities prices from 2020 to 2023: +6.25 percentage points

9. Arizona

• Relative change in overall cost of living from 2020 to 2023: 1.90 percentage points faster than national increase
• Overall cost of living in 2023: 1.11% higher than U.S. average
• Overall cost of living in 2020: 0.79% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: -2.60 percentage points
• Relative change in services prices from 2020 to 2023: +2.59 percentage points
• Relative change in housing prices from 2020 to 2023: +10.64 percentage points
• Relative change in utilities prices from 2020 to 2023: -6.91 percentage points

8. Tennessee

• Relative change in overall cost of living from 2020 to 2023: 2.02 percentage points faster than national increase
• Overall cost of living in 2023: 7.49% lower than U.S. average
• Overall cost of living in 2020: 9.50% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.52 percentage points
• Relative change in services prices from 2020 to 2023: +2.56 percentage points
• Relative change in housing prices from 2020 to 2023: +2.08 percentage points
• Relative change in utilities prices from 2020 to 2023: +2.18 percentage points

7. Georgia

• Relative change in overall cost of living from 2020 to 2023: 2.22 percentage points faster than national increase
• Overall cost of living in 2023: 3.30% lower than U.S. average
• Overall cost of living in 2020: 5.52% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +1.96 percentage points
• Relative change in services prices from 2020 to 2023: +1.24 percentage points
• Relative change in housing prices from 2020 to 2023: +5.17 percentage points
• Relative change in utilities prices from 2020 to 2023: -3.61 percentage points

6. South Carolina

• Relative change in overall cost of living from 2020 to 2023: 2.30 percentage points faster than national increase
• Overall cost of living in 2023: 6.82% lower than U.S. average
• Overall cost of living in 2020: 9.13% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.16 percentage points
• Relative change in services prices from 2020 to 2023: +2.39 percentage points
• Relative change in housing prices from 2020 to 2023: +5.91 percentage points
• Relative change in utilities prices from 2020 to 2023: -7.69 percentage points

5. Alabama

• Relative change in overall cost of living from 2020 to 2023: 2.41 percentage points faster than national increase
• Overall cost of living in 2023: 10.03% lower than U.S. average
• Overall cost of living in 2020: 12.44% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.72 percentage points
• Relative change in services prices from 2020 to 2023: +2.23 percentage points
• Relative change in housing prices from 2020 to 2023: +1.98 percentage points
• Relative change in utilities prices from 2020 to 2023: +5.34 percentage points

4. West Virginia

• Relative change in overall cost of living from 2020 to 2023: 2.44 percentage points faster than national increase
• Overall cost of living in 2023: 10.23% lower than U.S. average
• Overall cost of living in 2020: 12.67% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.47 percentage points
• Relative change in services prices from 2020 to 2023: +3.58 percentage points
• Relative change in housing prices from 2020 to 2023: -0.35 percentage points
• Relative change in utilities prices from 2020 to 2023: +1.27 percentage points

3. Delaware

• Relative change in overall cost of living from 2020 to 2023: 2.47 percentage points faster than national increase
• Overall cost of living in 2023: 0.75% lower than U.S. average
• Overall cost of living in 2020: 3.22% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +3.88 percentage points
• Relative change in services prices from 2020 to 2023: -0.35 percentage points
• Relative change in housing prices from 2020 to 2023: +7.07 percentage points
• Relative change in utilities prices from 2020 to 2023: +6.89 percentage points

2. North Carolina

• Relative change in overall cost of living from 2020 to 2023: 2.79 percentage points faster than national increase
• Overall cost of living in 2023: 5.86% lower than U.S. average
• Overall cost of living in 2020: 8.66% lower than U.S. average
• Relative change in goods prices from 2020 to 2023: +1.06 percentage points
• Relative change in services prices from 2020 to 2023: +2.60 percentage points
• Relative change in housing prices from 2020 to 2023: +5.85 percentage points
• Relative change in utilities prices from 2020 to 2023: -3.57 percentage points

1. Florida

• Relative change in overall cost of living from 2020 to 2023: 2.84 percentage points faster than national increase
• Overall cost of living in 2023: 3.45% higher than U.S. average
• Overall cost of living in 2020: 0.61% higher than U.S. average
• Relative change in goods prices from 2020 to 2023: +0.99 percentage points
• Relative change in services prices from 2020 to 2023: +2.39 percentage points
• Relative change in housing prices from 2020 to 2023: +9.47 percentage points
• Relative change in utilities prices from 2020 to 2023: +4.04 percentage points

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