MUNICIPAL COST INFLATION FALLS TO 1.3 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 February was 203.6, down by 1.2 percent from the previous month and only a 1.3 percent increase over the previous year. The February 2008 MCI was 201.0.

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.

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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