The Municipal Price Index (MPI) measures inflation in the costs municipalities face, which often differs from general Consumer Price Index (CPI) inflation that measures household costs. MPI tracks price changes for construction materials, asphalt, fuel, employee wages, insurance, and other municipal expenditure categories. Municipal costs frequently rise faster than CPI because infrastructure construction costs, specialized labour, and materials don't follow general consumer price trends. Understanding MPI helps explain why municipal budgets may increase faster than general inflation while not necessarily reflecting increased spending. Some municipal associations publish MPI calculations to inform budget discussions and public understanding of cost pressures.