The Bureau of Economic Analysis (BEA) does a periodic market basket study – estimating how much a standard basket of goods costs in different parts of the country.
The national average is indexed to $100 … and called the Relative Price Parity index.
Based on the most recent study, prices are the lowest in Mississippi where the $100 shopping basket can be purchased for $86.80.
Said differently, a dollar is worth 15% than the national average in Mississippi.
What’s the most costly state? Where does your state rank?
Technically speaking, Hawaii is the highest price state … the $100 basket costs $116.20
But, Hawaii gets nosed out for the top spot by the District of Columbia … $117.20.
Here are the top and bottom states …
According to the Tax Foundation …
Regional price differences are strikingly large; real purchasing power is 36 percent greater in Mississippi than it is in the District of Columbia.
In other words: by this measure, if you have $50,000 in after tax income in Mississippi, you would have to have after-tax earnings of $68,000 in the District of Columbia just to afford the same overall standard of living.
Here’s the full national view courtesy of the Tax Foundation … yellow is bad (high prices), deep pink is good (low prices)
Thanks to MS for feeding the lead