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.

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  • Notes on 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 Local government price index Adelaide consumer 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 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
    Mar 2013 0.3 2.5 0.0 2.2
    Jun 2013 0.2 2.5 0.2 2.1
    Sep 2013 1.1 2.3 1.4 2.0
    Dec 2013 0.5 2.2 0.7 2.3
    Mar 2014 0.7 2.5 0.7 2.9
    Jun 2014 0.0 2.3 0.4 3.1
    Sep 2014 0.9 2.1 0.4 2.1
    Dec 2014 0.3 1.9 0.3 1.7
    Mar 2015 0.2 1.4 0.1 1.1
    Jun 2015  -0.1 1.3 0.5 1.2
    Sep 2015 0.5 1.0 0.3 1.1
    Dec 2015 0.2 0.9 0.2 1.0
    Mar 2016 0.1 0.7 -0.3 0.7
    Jun 2016 0.1 0.9 0.5 0.7
    Sep 2016 1.0 1.4 0.8 1.2
    Dec 2016 0.4 1.6 0.3 1.3
    Mar 2017 0.6 2.1 0.4 2.0
    Jun 2017 0.1 2.0 0.1 1.6
    Sep 2017 1.5 2.5 1.1 1.8
    Dec 2017 0.8 2.9 0.7 2.3
    Mar 2018 0.7 3.1 0.4 2.3
    Jun 2018 0.1 3.1 0.4 2.7
    Sep 2018 1.3 2.9 0.3 1.8
    Dec 2018 0.6 2.7 0.5 1.6
    Mar 2019 0.1 2.1 0.1 1.3
    Jun 2019 0.5 2.5 0.5 1.4
  • Local government price index, annual series

      Local government price index Local government price index Adelaide consumer 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
    2012/13 152.3 2.8 140.3 2.0
    2013/14 155.8 2.3 143.9 2.6
    2014/15 158.4 1.7 146.2 1.6
    2015/16 159.9 0.9 147.4 0.9
    2016/17 162.7 1.8 149.7 1.5
    2017/18 167.4 2.9 153.1 2.3
    2018/19 171.7 2.6 155.4 1.5
  • Local government price index expenditure components, annual series

      % Change from previous year  % Change from previous year  % 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
    2012/13 2.9 2.5 2.8
    2013/14 2.1 2.8 2.3
    2014/15 1.5 2.0 1.7
    2015/16 0.9 0.9 0.9
    2016/17 1.9 1.5 1.8
    2017/18 2.9 3.0 2.9
    2018/19 2.4 2.9 2.6
  • Local government price index expenditure components, quarterly series, index numbers

      Index number  Index number  Index number 
     Year Recurrent Capital Total
    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
    Mar 2013 154.7 149.6 153.1
    Jun 2013 154.6 150.9 153.5
    Sep 2013 156.4 152.3 155.1
    Dec 2013 157.2 153.1 155.9
    Mar 2014 158.3 154.1 157.0
    Jun 2014 158.1 154.5 157.0
    Sep 2014 159.3 156.4 158.4
    Dec 2014 159.8 156.6 158.8
    Mar 2015 160.3 156.7 159.2
    Jun 2015 160.4 156.3 159.1
    Sep 2015 161.1 157.4 159.9
    Dec 2015 161.2 158.2 160.2
    Mar 2016 161.6 157.7 160.4
    Jun 2016 161.8 157.7 160.5
    Sep 2016 163.9 158.5 162.2
    Dec 2016 164.3 159.4 162.7
    Mar 2017 164.9 160.8 163.6
    Jun 2017 164.7 161.7 163.8
    Sep 2017 167.7 162.8 166.2
    Dec 2017 168.8 164.6 167.5
    Mar 2018 169.8 166.5 168.7
    Jun 2018 170.2 165.8 168.8
    Sep 2018 172.3 168.1 171.0
    Dec 2018 173.1 169.7 172.0
    Mar 2019 173.4 169.9 172.3
    Jun 2019 174.1 170.9 173.1
  • Expenditure weights

    The following table summarises the latest expenditure weights used in the Local Government Price Index. Expenditure weights are updated annually based on data provided by the Local Government Grants Commission for a large sample of councils.

    Expenditure Weights, 2017/18

      Expenditure weights based on total expenditure Expenditure weights based on sub-components
    Recurrent expenditures    
    Employee costs 0.326 0.476
    Waste management machinery and equipment leasing 0.000 0.000
    Waste management contracts 0.066 0.096
    Other plant and equipment leasing 0.004 0.006
    Other operating contracts 0.063 0.093
    Legal and accounting services 0.005 0.008
    Office and building cleaning services 0.005 0.007
    Other business services 0.034 0.050
    Insurance 0.023 0.033
    Telecommunications and internet services 0.005 0.008
    Printing, publishing and advertising 0.004 0.006
    Motor vehicle parts 0.003 0.004
    Motor vehicle repairs and servicing 0.004 0.005
    Automotive fuel 0.006 0.009
    Electricity 0.022 0.033
    Gas 0.001 0.001
    Water and sewerage 0.012 0.018
    Road, footpath, kerbing, bridge and drain building materials 0.010 0.015
    Other building and construction materials 0.005 0.007
    Office supplies 0.002 0.003
    Other expenses 0.084 0.123
    Total recurrent expenditures 0.686 1.000
         
    Capital expenditures    
    Buildings (non-dwelling) 0.062 0.196
    Construction works - road, drains, footpaths, kerbing, bridges 0.169 0.539
    Construction works - other 0.041 0.132
    Plant and equipment - machinery etc 0.037 0.117
    Plant and equipment - furniture etc 0.004 0.012
    Information technology (hardware and software) 0.002 0.005
    Total capital expenditures 0.314 1.000
         
    Total recurrent and capital expenditures 1.000 n.a.