New Yorkers faced faster price increases than much of the country over the past year, according to a new White House economic report.
An analysis released December 23 by the Council of Economic Advisers shows New York recorded higher inflation than the national average and higher than states classified as conservative, driven largely by housing and energy costs .
New York above national average
The report estimates New York’s year-over-year inflation at 3.2 percent as of November. That exceeds the national average of 2.7 percent and the 2.5 percent average across conservative states.
Housing costs stand out. In New York, housing inflation reached 4.6 percent, well above the conservative-state average of 3.4 percent. Energy prices also climbed sharply, with New York posting 9.3 percent energy inflation, one of the highest figures in the report.
Metro New York shows similar trend
The New York metro area followed the same pattern.
According to the report’s metro-level data, inflation in the New York City area ran at 3.0 percent, compared with 1.9 percent for metro areas in conservative states. Housing inflation in the metro area reached 4.2 percent, while energy prices rose 8.4 percent.
Transportation costs in the New York metro area increased 0.8 percent, still higher than the 0.0 percent average recorded in conservative-state metro areas.
Why New York runs hotter
The report points to local conditions rather than national policy alone.
Researchers argue that areas with limited housing supply, like New York, see demand increases show up more in prices than in new construction. That dynamic pushes rents and housing costs higher than in regions where supply expands more easily.
How the data was calculated
Because no official state-level inflation index exists, the analysis assigns inflation rates from census divisions to individual states, then calculates population-weighted averages.
The report classifies New York as a liberal state based on the 2024 presidential election results. It notes that New York’s higher inflation remains consistent even when states are grouped by party control of governors or legislatures.
The findings suggest that for New Yorkers, inflation pressures — especially housing and energy — continue to outpace much of the country, even as national inflation cools.
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