New Data Confirms the Obvious: Liberal States Are Driving Higher Inflation While Conservative States Keep Costs Lower

As families across the country continue to feel the squeeze from higher prices, new federal data confirms what many Americans already know from their grocery receipts and utility bills: states run by Democrats are experiencing significantly higher inflation than states led by conservatives.

A newly released analysis from the White House Council of Economic Advisers finds that inflation is consistently higher in liberal states and cities, while conservative states are seeing more modest price increases across nearly every major category — including housing, energy, food, and transportation.

According to the report, conservative states recorded an average year-over-year inflation rate of 2.5% as of November 2025, compared to 3.0% in liberal states. That gap widens even further in categories that matter most to working families:

• Energy inflation: 3.5% in conservative states vs. 5.2% in liberal states
• Transportation: 0.7% vs. 2.5%
• Housing: 3.4% vs. 3.6%

Metro areas follow the same pattern. Cities located in liberal states saw inflation averaging 3.0%, compared to just 1.9% in metro areas located in conservative states.

In short: blue-state policies come with a red-hot price tag.

Nevada sits squarely in the middle of this national divide — and the data should give policymakers pause.

The report shows Nevada’s year-over-year inflation at 2.6%, aligning it with conservative-leaning states in the Mountain West. Housing inflation in Nevada was notably lower than many coastal blue states, and energy inflation remained well below places like California and New York.

That’s not an accident.

Nevada’s relatively restrained inflation reflects lower taxes, fewer energy mandates, and less aggressive regulatory interference compared to its neighbors to the west. Californians may tolerate five-dollar gas and runaway housing costs — Nevadans shouldn’t be forced to import those same failed policies.

The report also highlights why liberal states struggle with higher inflation: tight housing supply, aggressive environmental regulations, and higher state and local taxes magnify price increases when federal spending expands.

California, New York, New Jersey, Oregon, and Washington all posted inflation rates above the national average — with energy inflation in some liberal states reaching nearly double that of conservative states.

When politicians choke off energy production, slow housing construction, and pile on new mandates, prices don’t magically go down. They explode.

Nevada has a choice.

The data makes one thing clear: states that prioritize affordable energy, housing supply, and fiscal restraint are protecting families from inflation, while states chasing progressive wish lists are punishing theirs.

As Democrats in Carson City and Washington push higher spending, more regulation, and California-style energy mandates, Nevadans should look closely at this report and ask a simple question:

Do we want to follow the states where inflation is lowest or the states where it’s spiraling out of control?

The numbers don’t lie. And neither do grocery bills.

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