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What Is Driving the Differences in Inflation Within the Midwest?


Abstract: In this article, we explore differences in inflation dynamics across cities (and other areas) within the Midwest. We look independently at the impact of consumption patterns and price changes by expenditure categories, and find that the recent gaps in inflation across midwestern cities have existed largely because of disparities in price changes for housing and transportation, as well as differences in the consumption patterns (as captured by expenditure weights) for transportation and housing.

Keywords: Inflation; Housing demand; regional inflation; Midwest economy;

JEL Classification: E31; R10; R21;

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Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Chicago Fed Letter

Publication Date: 2023-11

Volume: no 487

Pages: 10