MUNICIPAL COST INFLATION FALLS TO 0.8 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 March was 203.6, equal to last months MCI, and only a 0.8 percent increase over the previous year. The March 2008 MCI was 202.0.
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 five percent.