September 2010 Municipal Cost Index increases slightly
American City & County’s Municipal Cost Index (MCI) for September 2010 is available now at www.americancityandcounty.com/mciarchive. With a value of 212.4, the MCI is 3.4 percent higher than last year and has increased very slightly from the August value of 212.2.
The Producer Price Index (PPI) for Industrial Commodities is incorporated into the MCI to measure cost fluctuations in goods and materials. Selected commodities are published monthly in American City & County’s Most Recent Marketbasket. Among the items in the September Marketbasket, natural gas showed the greatest increase in the last month, rising 11.7 percent to an index of 198.3. Iron and steel scrap prices showed the greatest index decrease in the Marketbasket, falling 6.7 percent to 507.1.
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. For a complete archive of the index since 1978, visit www.americancityandcounty.com/mciarchive.