Last month, the overall costs of goods and services purchased by local governments decreased 0.2 percent, according to American City & County’s Municipal Cost Index. The December 2011 Municipal Cost Index value of 223.7 is 4.2 percent higher than last year.

Most items tracked by American City & County showed only slight price changes. However, after increasing 7.3 percent last month, diesel fuel (No. 2) decreased 5.5 percent, and natural gas prices continued to drop 5.9 percent after last month’s decrease of 8.6 percent. Home heating oil and distillates also decreased 6 percent.

Read the entire story from American City and County, our sister publication.