State Inflation Tracker: July 2022
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 Statistics’ 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, the last time inflation was within 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.
You can find our full analysis for July 2022 here. See the highlights below:
On average, prices did not increase from June 2022 to July 2022. However, prices have increased 13.3 percent from January 2021 to July 2022, costing the average American household $717 last month alone.
Even if prices stop increasing altogether, the inflation that has already occurred will cost the Average American household $8,607 over the next 12 months.
Families in the Mountain West (Arizona, Colorado, Idaho, Montana, Nevada, New Mexico, Utah, and Wyoming) are facing the highest inflation rates, with prices today 15.4 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 the states of Colorado ($937), Utah ($910), and Arizona ($833). Annualized, these families are facing inflation costs of $11,249, $10,917, and $9,999 over the next year, respectively.
For the average American household, inflation costs were essentially unchanged from June to July, decreasing by $1. Twenty-eight states saw inflation cost increases and 22 states saw inflation cost decreases. Monthly inflation costs increased the most in the states of Colorado ($29), Utah ($28), and Arizona and Nevada ($26 each). Inflation costs decreased the most in Massachusetts ($25), New Hampshire and Connecticut ($23 each), and Illinois ($21).
In the United States overall, the monthly inflation cost in July 2022 was highest within transportation ($318), followed by energy ($190), food ($93), and shelter ($88).
Families in Colorado are facing the highest transportation inflation ($410) and shelter inflation costs ($160); families in California are facing the highest food inflation costs ($117); and families in Texas are facing the highest energy inflation costs ($253).
Household Inflation Costs by State, July 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 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; Jackie Benson, Kevin Corinth, and Kole Nichols. “State Inflation Tracker: Methodology.” U.S. Joint Economic Committee Republicans. April 12, 2022.