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 - 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 current 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.
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 |
| Jun 2008 | 1.1 | 4.6 | 1.3 | 4.6 |
| Sep 2008 | 1.6 | 5.1 | 1.3 | 5.1 |
| Dec 2008 | 1.1 | 5.1 | -0.3 | 3.8 |
| Mar2009 | 0.4 | 4.2 | 0.0 | 2.3 |
| Jun 2009 | 0.5 | 3.6 | 0.6 | 1.6 |
| Sep 2009 | 1.2 | 3.2 | 1.1 | 1.4 |
| Dec 2009 | 0.2 | 2.3 | 0.3 | 2.0 |
| Mar 2010 | 0.9 | 2.8 | 0.6 | 2.6 |
| Jun 2010 | 0.6 | 3.0 | 0.7 | 2.8 |
| Sep 2010* | 1.3 | 3.1 | 0.9 | 2.6 |
| Dec 2010* | 0.5 | 3.4 | 0.3 | 2.5 |
| Mar 2011* | 0.9 | 3.4 | 1.6 | 3.6 |
| Jun 2011* | 1.1 | 3.9 | 1.0 | 3.9 |
| Sep 2011* | 0.9 | 3.6 | 1.0 | 4.0 |
Note: * LGPI estimates are based on expenditure weights for 2009/10, and are therefore subject to change once 2010/11 financial year expenditure data becomes available.
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 | 102.7 | 2.7 | 102.8 | 2.8 |
| 2002/03 | 106.9 | 4.1 | 106.9 | 4.0 |
| 2003/04 | 111.2 | 4.1 | 110.1 | 3.0 |
| 2004/05 | 114.9 | 3.4 | 112.7 | 2.3 |
| 2005/06 | 119.1 | 3.6 | 116.2 | 3.2 |
| 2006/07 | 123.8 | 3.9 | 119.3 | 2.6 |
| 2007/08 | 128.6 | 3.9 | 123.2 | 3.3 |
| 2008/09 | 134.3 | 4.4 | 127.1 | 3.2 |
| 2009/10 | 138.1 | 2.8 | 129.9 | 2.2 |
| 2010/11* | 142.8 | 3.4 | 134.0 | 3.2 |
Note: * LGPI estimates are based on expenditure weights for 2009/10, and are therefore subject to change once 2010/11 financial year expenditure data becomes available.
Local Government Price Index
Expenditure
Components, Quarterly Series
| % change from previous quarter | % change from corresponding quarter of the previous year |
|||||
|---|---|---|---|---|---|---|
| Quarter | Current | Capital | Total | Current | Capital | Total |
| Jun 2008 | 0.7 | 2.0 | 1.1 | 4.2 | 5.7 | 4.6 |
| Sep 2008 | 1.2 | 2.6 | 1.6 | 4.2 | 7.3 | 5.1 |
| Dec 2008 | 0.7 | 2.0 | 1.1 | 3.8 | 8.5 | 5.1 |
| Mar 2009 | 0.6 | -0.2 | 0.4 | 3.2 | 6.6 | 4.2 |
| Jun 2009 | 0.4 | 0.7 | 0.5 | 3.0 | 5.2 | 3.6 |
| Sep 2009 | 1.5 | 0.6 | 1.2 | 3.2 | 3.1 | 3.2 |
| Dec 2009 | 0.3 | 0.1 | 0.2 | 2.8 | 1.2 | 2.3 |
| Mar 2010 | 0.9 | 1.0 | 0.9 | 3.1 | 2.3 | 2.8 |
| Jun 2010 | 0.2 | 1.5 | 0.6 | 2.9 | 3.1 | 3.0 |
| Sep 2010* | 1.8 | 0.2 | 1.3 | 3.2 | 2.7 | 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 | 1.9 | 3.4 |
| Jun 2011* | 0.9 | 1.7 | 1.1 | 4.7 | 2.0 | 3.9 |
| Sep 2011* | 1.5 | -0.2 | 0.9 | 4.4 | 1.7 | 3.6 |
Note: * LGPI estimates are based on expenditure weights for 2009/10, and are therefore subject to change once 2010/11 financial year expenditure data becomes available.
Local Government Price Index
Expenditure Components, Annual Series
| % change from previous year | |||
|---|---|---|---|
| Year | Current | Capital | Total |
| 2001/02 | 2.7 | 2.5 | 2.7 |
| 2002/03 | 4.3 | 3.4 | 4.1 |
| 2003/04 | 5.0 | 1.8 | 4.1 |
| 2004/05 | 3.4 | 3.3 | 3.4 |
| 2005/06 | 3.3 | 4.4 | 3.6 |
| 2006/07 | 3.9 | 4.1 | 3.9 |
| 2007/08 | 3.8 | 4.0 | 3.9 |
| 2008/09 | 3.4 | 7.0 | 4.4 |
| 2009/10 | 3.0 | 2.3 | 2.8 |
| 2010/11* | 3.9 | 2.5 | 3.4 |
Note: * LGPI estimates are based on expenditure weights for 2009/10, and are therefore subject to change once 2010/11 financial year expenditure data becomes available.
