April 2011 Municipal Cost Index shows continuing price increases

The costs of goods and services purchased by local governments increased 0.6 percent over last month, according to American City & County’s Municipal Cost Index. The April 2011 Municipal Cost Index value of 218.8 is 4.3 percent higher than last year.

Of the items local governments commonly use, home heating oil and distillates, diesel fuel and natural gas showed the largest price increases in the last month. Home heating oil and distillates increased 14.6 percent, diesel fuel prices increased 12.6 percent, and natural gas prices increased 7.6 percent. However, natural gas prices are 20 percent lower than they were last year. Diesel fuel prices have increased 39.8 percent in the last year, which is the highest percentage increase among items tracked by American City & County.

The Municipal Cost Index, developed exclusively by American City & County, is designed to show the effects of inflation on the cost of providing municipal services. State and local government officials rely on American City & County’s Municipal Cost Index to stay on top of price trends, help control price increases for commodities, make informed government contract decisions and intelligent budget planning. Since 1978, readers have loyally referred to the Municipal Cost Index to determine the cost of inflation and, hence, the rising cost of doing business as a local government.

American City & County’s Municipal Cost Index for April 2011 is available now at www.americancityandcounty.com/mciarchive. For a complete archive of the index since 1978, visit www.americancityandcounty.com/mciarchive.