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The Illinois Municipal Price Index (MPI) which is designed to measure the increases in prices of goods and services purchased by Illinois municipalities. Comparisons of the price and wage increases are shown for city expenditures as a whole and by major department so that users can determine the extent to which expenditures, in constant dollars, have changed through time. The MPI differs from other indices such as the Consumer Price Index (CPI) or the Producer Price Index (PPI) in that it is constructed based on purchasing patterns of cities rather than consumers or businesses. The MPI is a weighted aggregate of price relatives which means that the price or wage increases are weighted by the relative importance that each represents in the city or departmental budget.
Expenditure Weights
Municipal expenditures in 2005 were grouped into roughly similar categories and a percentage distribution was calculated. These expenditure categories are then matched with price increases for each group. Expenditure weights are created for each of ten city departments and for city expenditures as a whole based on a sample of 23 municipal expenditures.
Price Relatives
Since municipalities purchase both goods and services, it is important that price changes match the city expenditures as closely as possible. Two-thirds or more of the city expenditures typically are on wages and salaries. The changes in wages or salaries among cities make calculating relative price changes difficult. The MPI conducts a survey of 58 Illinois municipalities each year to determine average wage and salary changes. These data serve as a basis for the labor component of the index.
Information on price changes for other items purchased by municipalities is gathered from a variety of sources including the detailed CPI, the PPI, and other more specialized indices. While these price changes are not specific for Illinois municipalities, one might expect that any distortion in the data is minor and the MPI is only intended to approximate price changes faced by municipalities in any case.
Price Indices
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MPI
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CPI 1982-84=100.0
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PPI 1982=100.0
|
| Year |
2000=100.0 |
All Items |
All Commodities |
All Services |
All Commodities |
|
| 1990 | 68.1 | 130.7 | 122.8 | 139.2 | 116.3 |
| 1991 | 71.1 | 136.2 | 126.6 | 146.3 | 116.5 |
| 1992 | 73.9 | 140.3 | 129.1 | 152.0 | 117.2 |
| 1993 | 76.7 | 144.5 | 131.5 | 157.9 | 118.9 |
| 1994 | 79.3 | 148.2 | 133.8 | 163.1 | 120.4 |
| 1995 | 82.2 | 152.4 | 133.8 | 163.1 | 120.4 |
| 1996 | 86.0 | 156.9 | 139.9 | 174.1 | 127.7 |
| 1997 | 89.1 | 160.5 | 141.8 | 179.4 | 127.6 |
| 1998 | 91.9 | 163.0 | 141.9 | 184.2 | 124.4 |
| 1999 | 95.7 | 166.6 | 144.4 | 188.8 | 125.5 |
| 2000 | 100.0 | 172.2 | 149.2 | 195.3 | 132.7 |
| 2001 | 103.7 | 177.1 | 150.7 | 203.4 | 134.2 |
| 2002 | 107.2 | 179.9 | 149.7 | 209.8 | 131.1 |
| 2003 | 111.7 | 184.4 | 151.2 | 216.5 | 138.1 |
| 2004 | 115.7 | 188.9 | 154.7 | 222.8 | 146.7 |
| 2005 | 120.9 | 195.3 | 160.2 | 230.1 | 157.3 |
| 2006 | 126.5 | 201.6 | 164.0 | 239.9 | 164.8 |
Departmental Price Indices (2000=100.0)
| Year |
General
Control |
Other
Sanitation |
Health |
Water/
Sewer |
Parks/
Recreation |
Police
Protection |
Fire
Protection |
Streets |
Library |
Community/
Ecomomic Development |
| 1990 |
61.9 |
70.5 |
61.0 |
73.8 |
69.6 |
66.5 |
66.9 |
68.9 |
64.4 |
| 1991 |
65.4 |
73.2 |
64.5 |
75.9 |
72.5 |
69.9 |
70.2 |
70.7 |
67.7 |
| 1992 |
68.4 |
75.6 |
67.9 |
77.8 |
75.2 |
73.1 |
73.2 |
72.7 |
71.2 |
| 1993 |
71.6 |
78.1 |
71.7 |
79.3 |
78.0 |
76.2 |
76.3 |
74.9 |
74.4 |
| 1994 |
74.5 |
80.6 |
75.3 |
82.4 |
80.7 |
78.9 |
79.4 |
76.9 |
77.8 |
| 1995 |
76.9 |
82.7 |
79.9 |
84.5 |
83.1 |
82.8 |
82.2 |
79.1 |
81.4 |
| 1996 |
81.2 |
87.7 |
84.0 |
87.6 |
86.1 |
86.4 |
85.5 |
83.8 |
86.1 |
| 1997 |
84.8 |
90.3 |
87.4 |
90.2 |
88.9 |
89.7 |
88.6 |
86.7 |
89.7 |
| 1998 |
90.4 |
92.3 |
90.8 |
92.4 |
91.7 |
92.9 |
92.5 |
89.1 |
89.9 |
| 1999 |
94.9 |
95.9 |
95.8 |
96.2 |
95.3 |
96.5 |
96.2 |
94.4 |
93.9 |
| 2000 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
100.0 |
| 2001 |
102.9 |
103.2 |
103.6 |
102.4 |
103.2 |
103.4 |
105.3 |
103.1 |
102.6 |
103.2 |
| 2002 |
107.1 |
107.8 |
107.6 |
105.4 |
106.9 |
106.7 |
108.7 |
105.3 |
106.3 |
107.8 |
| 2003 |
110.3 |
109.3 |
112.6 |
107.7 |
110.1 |
111.3 |
113.5 |
108.8 |
109.3 |
111.7 |
| 2004 |
113.4 |
118.8 |
116.6 |
112.2 |
115.3 |
115.7 |
118.2 |
114.1 |
114.1 |
115.6 |
| 2005 |
117.6 |
124.8 |
121.2 |
118.8 |
121.1 |
119.8 |
122.9 |
122.2 |
119.5 |
120.3 |
| 2006 |
122.8 |
130.9 |
125.5 |
125.1 |
126.4 |
125.1 |
127.8 |
130.1 |
124.7 |
125.5 |
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