June 2011 Municipal Cost Index shows steady increase

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 June 2011 Municipal Cost Index value of 221.9 is 4.9 percent higher than last year.

Of the items local governments commonly use, natural gas; tires, tubes and tread; and home heating oil and distillates showed the largest price increases in the last month. Natural gas increased 9.4 percent, tires increased 4.5 percent, and home heating oil increased 3.9 percent.

Diesel fuel prices have increased 41.6 percent in the last year, which is the highest percentage increase among items tracked by American City & County. Other large increases have been seen in gasoline (38.8 percent higher than last year), home heating oil and distillates (37.6 percent higher) and crude petroleum (33.3 percent higher).

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 June 2011 is available now at www.americancityandcounty.com/mciarchive. For a complete archive of the index since 1978, visit www.americancityandcounty.com/mciarchive.