Texas Economics Showdown 3

California’s unexpected win in Round 3

This short series of articles compares the economic performance of four states, Texas, Florida, New York, and California, over the last five years. In the end, we will attempt to declare an overall winner. While the metrics are quantitative, the choice of metrics and relative rankings has a qualitative and selective component. In Round 2, business applications, Texas edged out Florida for the win.

Round 3: Inflation

Using the latest CPI – All items for the most extensive metro coverage area available in each state, the cumulative results show that California, at 18.3%, beats out New York, at 18.4%, for the lowest total inflation. Texas lands in third place with 20.1%, and the clear loser is anyone living in Florida having to deal with a 28.6% increase in the cost of living.

At first glance, these results may seem counter-intuitive, as California and especially New York have a reputation for ever-increasing costs. Remember that population and employers moved significantly to Texas and Florida during the pandemic. These demographic shifts put upward pressure on housing and the available goods and services in Texas and Florida, contributing to overall increases in living costs that other parts of the country did not experience.

Up Next Round 4: GDP and final rankings

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Footnote:

1. Calculated as Dec-Current Year / Dec-Prior Year. 2024 as Apr-24 / Dec-23. Cumulative as April-24 / Dec-19.

2. Bureau of Labor Statistics series: CUURA318SA0.

3. Bureau of Labor Statistics series: CUURA320SA0.

4. Bureau of Labor Statistics series: CUURA422SA0.

5. Bureau of Labor Statistics series: CURRA101SAO.