Record inflation around the world is changing lives and forcing some tough decisions. With U.S. consumer prices rising at a pace not seen in 40 years, families are putting off some purchases and changing their shopping habits. The latest government inflation report for June was worse than expected, with the Consumer Price Index rising 9.1% year over year.

With the workforce more mobile than ever, some are even moving to more affordable locations. The states listed here are not among them. They are America’s most expensive states to live in, as determined by CNBC’s exclusive America’s Top States for Business study.

Because Cost of Living is such an important consideration these days, it’s an important part of our methodology. We rate the states based on an index of prices for a broad range of goods and services. Also listed below are average prices for selected items last year based on the 2021 Average Cost of Living Index by the Council for Community and Economic Research, C2ER. Prices have only gone higher this year, so we have also included the current regional inflation rate year-over-year from the U.S. Bureau of Labor Statistics.

Inflation is hitting these ten states the hardest.

10. Vermont


Sean Pavone | Istock | Getty Images

The Green Mountain State offers the best quality of life according to this year’s Top States for Business report, but you will pay dearly for it—or at least a lot more than you once did in a state that’s traditionally been a refuge from the big cities of the Northeast. That is especially true when it comes to home prices, which jumped 20 percent last year according to the Federal Housing Finance Agency. Demand far outstripped supply, as people who used to just visit Vermont decided to stay.

2022 Cost of Living Score: 10 out of 50 points (Top States Grade: F)

Consumer Price Index (May, New England Division): UP 7.9%

Average Home Price (Burlington): $546,522

Half Gallon of Milk: $3.34

Monthly Energy Bill: $233.39

9. Rhode Island

National Grid worker Jesus Garcia checks on the valves in an underground gas substation on Broadway Street in Newport, RI, as purging of gas from the lines was ongoing.

John Tlumacki | Boston Globe | Getty Images

8. Connecticut

A man fills up his truck in Norwalk, Connecticut. Connecticut has some of the nation’s highest gas prices where according to the AAA.

Spencer Platt | Getty Images News | Getty Images

7. Maryland

A man shops for meat at a Safeway grocery store in Annapolis, Maryland, on May 16, 2022, as Americans brace for summer sticker shock as inflation continues to grow.

Jim Watson | AFP | Getty Images

6. Alaska

People shop for food at a supermarket in the town of Bethel on the Yukon Delta, Alaska.

Mark Ralston | AFP | Getty Images

5. Oregon

Condos on the Willamette River in Portland, Oregon.

Davealan | Istock | Getty Images

4. Massachusetts

John Hornstra, a fifth generation Hornstra family member, makes a morning delivery in Norwell, MA.

David L. Ryan | Boston Globe | Getty Images

3. California

Houses in Hercules, California, US, on Tuesday, May 31, 2022. Homebuyers are facing a worsening affordability situation with mortgage rates hovering around the highest levels in more than a decade.

David Paul Morris | Bloomberg | Getty Images

How bad is California’s housing shortage? A 2015 study by the state’s Legislative Analyst found that the state has been building about 110,000 fewer units than the amount needed to keep up with demand. And California has been doing this for more than 30 years! That adds up to a shortage of around 3.5 million housing units and counting. And that translates to higher prices. A 2,400 square foot home in San Francisco will cost around $1.4 million if you’re lucky. The same house in Phoenix, a metro area about the same size, might go for around $400,000. And don’t get us started on the gas prices, the highest in the nation.

2022 Cost of Living Score: 3 out of 50 points (Top States Grade: F)

Consumer Price Index (May, West Region): UP 8.3%

Average Home Price (San Francisco): $1,396,782

Half Gallon of Milk: $2.55

Monthly Energy Bill: $266.44

2. New York

NEW YORK, NEW YORK – SEPTEMBER 10: Customers sit at tables separated by dividers outside Peter Luger Steakhouse in Williamsburg as the city continues Phase 4 of re-opening following restrictions imposed to slow the spread of coronavirus on September 10, 2020 in New York City. The fourth phase allows outdoor arts and entertainment, sporting events without fans and media production. (Photo by Noam Galai/Getty Images)

Noam Galai | Getty Images Entertainment | Getty Images

1. Hawaii

Swissmediavision | E+ | Getty Images


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