MUNICIPAL COST INFLATION FALLS TO 2.4 PERCENT

The Municipal Cost Index (MCI), developed exclusively by American City and County magazine, shows the effect of inflation on the cost of providing municipal services. The MCI is used to study price trends, help control price increases for commodities, make informed government contract decisions, and facilitate sound budget planning. The MCI determines the cost of inflation and the rising cost of doing business as a local government.

According to American City and County magazine, the MCI for January 2009 was 206.1, down 2.1 percent from the previous month but a 2.4 percent increase over the previous year. The January 2008 MCI was 201.3.

Although costs rose through most of 2008, they have fallen in recent months. Between October 2007 and September 2008, the MCI went from 198.2 to 214.7, an increase of 8.3 percent. But since September 2008, the MCI has fallen by four percent.

TML member cities may use the material herein for any purpose.
No other person or entity may reproduce, duplicate, or distribute any part of this document without the written authorization of the
Texas Municipal League.

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