MUNICIPAL COST INFLATION GOES TO 7.4 PERCENT
The Municipal Cost Index (MCI), developed exclusively by American City and County magazine, shows the effects 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 August 2008 was 212.4, a 1.48 percent increase over the previous month and a 7.4 percent increase over the previous year. The August 2007 MCI was 197.8.
In this era of rapid inflation, the MCI increases at a faster rate than does the Consumer Price Index (CPI) because a city purchases great amounts of items that are pushing inflation: gasoline, diesel fuel, asphalt, health insurance, and many more.