On the face of it, you'd expect South Dakota to come in below the national average for cost of living. After all, who actually lives here? OK, we realize some of our readers probably do, but how many neighbors do you have, and how far away are they? South Dakota is the fifth least populated state in the USA, and the people who do live here are fairly spread out. Most of South Dakota just stands empty and undeveloped.
That in itself might explain why prices are a pinch above the average; supplying some essentials to isolated and rural communities costs money; especially when it comes to providing modern essentials like internet and telephone connections. Above anything else, it's best known for being the home of Mount Rushmore. That sculpture, much like the population of the state, is smaller than people tend to imagine it is!