States: Where does $100 buy the most? The least?

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.

image

=====

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 …

image
click for the BEA’s complete list

=====

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)

image
click for the Tax Foundations enlarged view
======

Thanks to MS for feeding the lead

#HomaFiles

Follow on Twitter @KenHoma            >> Latest Posts

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s