Chicago Fed, Report: What is driving the differences in inflation across U.S. regions? 

“We find that price changes in the housing sector are the main driver of regional differences in inflation in the two time periods we investigate: January 2002–January 2023 and January 2019–January 2023. Although residents in different areas do have different purchasing patterns, we find that this plays only a small role in discrepancies in regional inflation. One exception to this is that lower transportation expenditure weights in the Northeast have contributed to lower inflation readings in the Northeast recently. While these differences are notable, we also observe that inflation across regions tends to move together and that in all four Census regions, inflation rates have been far higher in recent years than in previous periods.”