FY2016-17 Budget Final

City of DeSoto Five-Year Financial Forecast FY2017 – FY2021

1.4 Consumer Price Index - CPI The Consumer Price Index for all urban consumers is an indication of cost of living. The change in the index from year to year is used to measure the cost of living and economic inflation. The graph below compares a 12-months percentage change in the CPI for Texas and U.S.A. The average of the five years 12-Months change for Texas CPI is 1.69 percent. This is considered to be a moderate rate of inflation which would be a driver for businesses and consumer demand and for future property and sales taxes.

CPI - 12 Months Change

-3.00% -2.00% -1.00% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 7.00%

TEXAS -CPI

USA - CPI

Source: U.S. Bureau of Labor Statistics

1.5 Gross Domestic Product - GDP GDP is one of the most common indicators to gauge the economy’s health. The U.S Bureau of Economic Analysis provides the GDP information by Metropolitan Area. The chart below summarizes the changes in GDP index and the annual percentage changes. The data exhibits a healthy economic trend starting in 2010 with 8.53 percent increase in the index from 2013 to 2014.

Dallas-Fort Worth-Arlington, TX - GDP Index

100 110 120 130 140

-4% -2% 0% 2% 4% 6% 8% 10%

80 90

GDP Total

Annual Percentage Change

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