Connecticut's High Prices Are Only Part of the Story
This may come as a surprise to those of you who have bought anything in Connecticut recently, but: The state is a pretty affordable place to live.</br></br>How can that be? After all, prices in Connecticut for everything from utilities to groceries and health care are 22% higher than the nationwide average, according to an index compiled by the latest edition of the Connecticut Economy, a quarterly publication from the University of Connecticut. Only Massachusetts and Alaska have higher cost-of-living indexes, says economist Steven Lanza, managing editor of the review.</br></br>But, Mr. Lanza says, that only tells part of the story. Prices by themselves are meaningless. "They're high here, low there, but what does that really tell you?" Mr. Lanza says. "You have to look at purchasing power."</br></br>According to the U.S. Commerce Department's most recent figures, Connecticut leads the nation in per-capita personal income. At $33,875 a year, income is 39% above the national average.</br></br>"So prices are relatively high here," Mr. Lanza says, "but incomes are higher still."