Value Added by Industry: Government: State and Local (Chain-Type Price Index)

VAPIPSL • Economic Data from Federal Reserve Economic Data (FRED)

Latest Value

2.50

Year-over-Year Change

25.00%

Date Range

4/1/2005 - 1/1/2025

Summary

The Value Added by Industry: Government: State and Local (Chain-Type Price Index) measures the price changes of goods and services produced by state and local governments in the United States. It is a key indicator for economists and policymakers to assess inflationary pressures and the cost of government services.

Analysis & Context

This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.

Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.

About This Dataset

This index tracks the price changes of the value added by state and local governments, which includes compensation of employees, taxes on production and imports, and gross operating surplus. It is a chain-type price index, meaning the basket of goods and services is updated periodically to reflect changing production patterns.

Methodology

The data is collected through surveys of state and local government entities and calculated using a chain-weighted formula.

Historical Context

This index helps inform fiscal and monetary policy decisions by providing insight into the cost drivers of government services.

Key Facts

  • The index has a base year of 2012.
  • State and local governments account for over $2 trillion in annual spending.
  • Prices for state and local government services have increased by over 10% since 2012.

FAQs

Q: What does this economic trend measure?

A: This index measures the price changes of goods and services produced by state and local governments in the United States.

Q: Why is this trend relevant for users or analysts?

A: This index is important for understanding inflationary pressures and the cost of government services, which informs fiscal and monetary policy decisions.

Q: How is this data collected or calculated?

A: The data is collected through surveys of state and local government entities and calculated using a chain-weighted formula.

Q: How is this trend used in economic policy?

A: This index helps inform fiscal and monetary policy decisions by providing insight into the cost drivers of government services.

Q: Are there update delays or limitations?

A: The data is published quarterly with a delay of approximately two months.

Related Trends

Citation

U.S. Federal Reserve, Value Added by Industry: Government: State and Local (Chain-Type Price Index) (VAPIPSL), retrieved from FRED.