WASHINGTON, D.C. — Kevin Warsh, Federal Reserve Chairman, stated that inflation is the most regressive form of taxation during a Senate confirmation hearing on April 22, 2026.

Warsh asserted that inflation disproportionately affects individuals with fewer financial resources. "It's the most regressive tax that anyone in Washington could come up with," Warsh said. He added, "If you were trying to do the most harm to the least well off among us, inflation would be the way to do it."

Cost of Living is one of ten categories in CNBC's America's Top States for Business study. The study, in its 20th year as of 2026, bases state ratings on an index of prices for goods and services. This index is calculated by the Council for Community and Economic Research.

The study's methodology for 2026 allocates 2% of each state's total score to the Cost of Living category. It considers housing affordability for both homeowners and renters. The cost to insure a median-priced home is also measured using the most recent available data.

In May 2026, the Consumer Price Index for the Midwest Region saw a 5% increase year-over-year. As part of its 2026 evaluation, New York received a grade of D+ in the America's Top States for Business study. Washington also received a D+ grade in the 2026 study. Data from the Council for Community and Economic Research indicates that sugar is 20% more expensive in Hartford, Connecticut, compared to Fayetteville, Arkansas.