May 2011 Municipal Cost Index increases slightly
The costs of goods and services purchased by local governments increased 0.8 percent over last month, according to American City & County’s Municipal Cost Index. The May 2011 Municipal Cost Index value of 220.5 is 4.8 percent higher than last year.
Of the items local governments commonly use, gypsum, crude petroleum and gasoline showed the largest price increases in the last month. Gypsum increased 7 percent, and crude petroleum and gasoline each increased 5.7 percent. Diesel fuel prices have increased 42.5 percent in the last year, which is the highest percentage increase among items tracked by American City & County. Natural gas showed the greatest price decrease last month, dropping 11.7 percent. Natural gas prices are down 20.1 percent from last year.
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 May 2011 is available now at www.americancityandcounty.com/mciarchive. For a complete archive of the index since 1978, visit www.americancityandcounty.com/mciarchive.