Local Government Price Index
About the Local Government Price Index
The Local Government Price Index (LGPI) measures price movements faced by Local Government in South Australia in respect of their purchases of goods and services. As the mix of goods and services purchased by Local Councils is quite different from that typically consumed by households, overall price movements faced by Local Councils may differ markedly from those faced by households. Overall price movements indicated by the Consumer Price Index (CPI) - which measures changes in the price of a 'basket' of goods and services which account for a high proportion of expenditure by metropolitan households - may therefore not accurately reflect price movements faced by Local Councils.
In order to improve the information available to Councils, the public and other interested parties, the South Australian Local Government Financial Management Group commissioned the Australian Bureau of Statistics (ABS) to develop the LGPI as an independent and reliable measure of price movements faced by Local Government in South Australia. The South Australian Centre for Economic Studies took over responsibility for preparing the LGPI from the September quarter 2009. Prior to this it was prepared by the ABS.
In technical terms, the LGPI is a chained Laspeyres price index which represents an arithmetic average of the pure price change of items based on expenditure patterns on the previous year. Annual council expenditure data provided by the Local Government Grants Commission (LGGC) is used to produce expenditure weights. These weights are then combined with select ABS price indexes (i.e. select Consumer Price Indexes and Producer Price Indexes for Adelaide and Australia) to determine the indexes contribution to a total recurrent expenditure LGPI, a total capital expenditure LGPI, and a total expenditure LGPI.
Is it important to note that the ABS price indexes used in the model are estimates, based on a sample of goods and services from a sample of retailers, wholesalers and employing organisations. Therefore, the Local Government Price Indexes which are calculated using ABS price indexes are also estimates.
Further information on the nature and history of the LGPI is available at the website of the Local Government Association of South Australia.
Local Government Price Index Data
The latest quarterly and annual results for the Local Government Price Index are shown in the tables below.
Important note on impact of the carbon price: the LGPI, like the CPI, looks backward at prices paid using real data. The introduction of a carbon price from 1 July 2012 will have a one-off impact on prices paid after this date. Impacts of a carbon price will not show up in the LGPI until the September quarter 2012 or later.
Important note on changes to data: from the September quarter 2012 the ABS changed the index reference period for index numbers published as part of the Consumer Price Index and Producer Price Index (PPI). Due to rounding and re-referencing, some period-to-period percentage changes indicated by the CPI and PPI may differ slightly from those previously published. With these changes the opportunity was also taken to replace historical data for some PPI series used to construct the LGPI that had been discontinued from the September quarter 2009 onwards. As a consequence of these various changes, LGPI index numbers and associated percentage changes from period to period may differ slightly from those previously published.
Local Government Price Index, Quarterly Series
| Local Government Price Index | Adelaide Consumer Price Index | |||
|---|---|---|---|---|
| Quarter | % change from previous quarter |
% change from corresponding quarter of previous year |
% change from previous quarter |
% change from corresponding quarter of previous year |
| Dec 2008 | 1.1 | 5.2 | -0.3 | 3.7 |
| Mar2009 | 0.4 | 4.3 | 0.0 | 2.3 |
| Jun 2009 | 0.6 | 3.7 | 0.5 | 1.5 |
| Sep 2009 | 1.2 | 3.3 | 1.1 | 1.3 |
| Dec 2009 | 0.2 | 2.4 | 0.4 | 2.1 |
| Mar 2010 | 0.9 | 2.9 | 0.5 | 2.6 |
| Jun 2010 | 0.6 | 3.0 | 0.7 | 2.8 |
| Sep 2010 | 1.3 | 3.1 | 0.9 | 2.7 |
| Dec 2010 | 0.5 | 3.4 | 0.3 | 2.6 |
| Mar 2011 | 0.9 | 3.4 | 1.7 | 3.7 |
| Jun 2011 | 1.2 | 3.9 | 0.9 | 3.9 |
| Sep 2011 | 0.9 | 3.6 | 1.0 | 4.0 |
| Dec 2011 | 1.3 | 4.4 | 0.0 | 3.6 |
| Mar 2012 | 0.7 | 4.2 | -0.1 | 1.8 |
| Jun 2012 | 0.2 | 3.2 | 0.3 | 1.2 |
| Sep 2012 | 1.3 | 3.6 | 1.5 | 1.7 |
| Dec 2012 | 0.6 | 2.8 | 0.4 | 2.1 |
Local Government Price Index, Annual Series
| Local Government Price Index | Adelaide Consumer Price index | |||
|---|---|---|---|---|
| Year |
Index |
% change from previous year |
Index |
% change from previous year |
| 2000/01 | 100.0 | na | 100.0 | na |
| 2001/02 | 102.9 | 2.9 | 102.7 | 2.7 |
| 2002/03 | 107.0 | 4.0 | 106.8 | 4.0 |
| 2003/04 | 111.6 | 4.3 | 110.0 | 3.0 |
| 2004/05 | 115.1 | 3.1 | 112.7 | 2.4 |
| 2005/06 | 119.1 | 3.5 | 116.2 | 3.1 |
| 2006/07 | 123.7 | 3.9 | 119.3 | 2.6 |
| 2007/08 | 128.5 | 3.8 | 123.2 | 3.3 |
| 2008/09 | 134.3 | 4.5 | 127.1 | 3.2 |
| 2009/10 | 138.1 | 2.8 | 129.8 | 2.2 |
| 2010/11 | 142.9 | 3.5 | 134.0 | 3.2 |
| 2011/12 | 148.2 | 3.7 | 137.5 | 2.6 |
Local Government Price Index
Expenditure Components, Quarterly Series
| % change from previous quarter | % change from corresponding quarter of the previous year |
|||||
|---|---|---|---|---|---|---|
| Quarter | Recurrent | Capital | Total | Recurrent | Capital | Total |
| Dec 2008 | 0.8 | 2.0 | 1.1 | 3.9 | 8.5 | 5.2 |
| Mar 2009 | 0.6 | -0.2 | 0.4 | 3.3 | 6.6 | 4.3 |
| Jun 2009 | 0.5 | 0.8 | 0.6 | 3.1 | 5.3 | 3.7 |
| Sep 2009 | 1.5 | 0.5 | 1.2 | 3.4 | 3.1 | 3.3 |
| Dec 2009 | 0.3 | 0.1 | 0.2 | 2.9 | 1.2 | 2.4 |
| Mar 2010 | 0.8 | 1.0 | 0.9 | 3.1 | 2.4 | 2.9 |
| Jun 2010 | 0.2 | 1.5 | 0.6 | 2.9 | 3.1 | 3.0 |
| Sep 2010 | 1.8 | 0.2 | 1.3 | 3.2 | 2.8 | 3.1 |
| Dec 2010 | 0.8 | 0.1 | 0.5 | 3.7 | 2.8 | 3.4 |
| Mar 2011 | 1.3 | 0.1 | 0.9 | 4.1 | 1.8 | 3.4 |
| Jun 2011 | 0.9 | 1.8 | 1.2 | 4.8 | 2.1 | 3.9 |
| Sep 2011 | 1.5 | -0.2 | 0.9 | 4.5 | 1.6 | 3.6 |
| Dec 2011 | 0.9 | 2.2 | 1.3 | 4.6 | 3.9 | 4.4 |
| Mar 2012 | 0.7 | 0.5 | 0.7 | 4.1 | 4.3 | 4.2 |
| Jun 2012 | 0.2 | 0.3 | 0.2 | 3.4 | 2.8 | 3.2 |
| Sep 2012 | 1.5 | 0.7 | 1.3 | 3.5 | 3.7 | 3.6 |
| Dec 2012 | 0.6 | 0.5 | 0.6 | 3.2 | 1.9 | 2.8 |
Local Government Price Index
Expenditure Components, Annual Series
| % change from previous year | |||
|---|---|---|---|
| Year | Recurrent | Capital | Total |
| 2001/02 | 3.0 |
2.5 | 2.9 |
| 2002/03 | 4.1 | 3.5 | 4.0 |
| 2003/04 | 5.3 | 1.8 | 4.3 |
| 2004/05 | 3.1 | 3.3 | 3.1 |
| 2005/06 | 3.1 | 4.4 | 3.5 |
| 2006/07 | 3.8 | 4.1 | 3.9 |
| 2007/08 | 3.8 | 4.0 | 3.8 |
| 2008/09 | 3.5 | 7.0 | 4.5 |
| 2009/10 | 3.1 | 2.3 | 2.8 |
| 2010/11 | 3.9 | 2.5 | 3.5 |
| 2011/12 | 4.1 | 2.9 | 3.7 |
Local Government Price Index
Expenditure Components, Quarterly Series, Index Numbers
| Index Number | |||
|---|---|---|---|
| Year | Recurrent | Capital | Total |
| Dec 2008 | 134.0 | 135.1 | 134.3 |
| Mar 2009 | 134.8 | 134.9 | 134.8 |
| Jun 2009 | 135.4 | 136.0 | 135.6 |
| Sep 2009 | 137.4 | 136.7 | 137.2 |
| Dec 2009 | 137.9 | 136.8 | 137.5 |
| Mar 2010 | 139.0 | 138.2 | 138.7 |
| Jun 2010 | 139.3 | 140.2 | 139.6 |
| Sep 2010 | 141.8 | 140.5 | 141.4 |
| Dec 2010 | 142.9 | 140.6 | 142.2 |
| Mar 2011 | 144.7 | 140.6 | 143.4 |
| Jun 2011 | 146.0 | 143.1 | 145.1 |
| Sep 2011 | 148.2 | 142.8 | 146.4 |
| Dec 2011 | 149.5 | 146.0 | 148.4 |
| Mar 2012 | 150.7 | 146.7 | 149.4 |
| Jun 2012 | 151.0 | 147.1 | 149.8 |
| Sep 2012 | 153.3 | 148.1 | 151.7 |
| Dec 2012 | 154.3 | 148.8 | 152.6 |
