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First Quarter Inflation Adjustment

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Released: July 9, 2014
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PUBLIC NOTICE

FEDERAL COMMUNICATIONS COMMISSION

445 12TH STREET, S.W.

WASHINGTON, D.C. 20554

DA 14-979

News media information 202/418-0500 Fax-On-Demand 202/418-2830 Internet: http://www.fcc.gov ftp.fcc.gov

MEDIA BUREAU ACTION

July 9, 2014

FIRST QUARTER 2014 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS

USING FCC FORM 1240 NOW AVAILABLE

As described in the instructions for FCC Form 1240, cable operators may adjust the non-external cost

portion of their rates for inflation based on quarterly figures released by the Federal Communications

Commission. The first quarter 2014 inflation factor for operators using FCC Form 1240 is 1.28%.

The adjustment factor of 1.28% is a measure of the annualized change in prices occurring over the period

from January 1, 2014 to March 31, 2014. All adjustments are based on changes in the Gross National

Product Price Index (GNP-PI) published by the United States Department of Commerce, Bureau of

Economic Analysis (BEA). The Media Bureau obtained the chain-type price indices from the BEA news

release dated June 25, 2014 (BEA 14-28) at Table 6 (Addenda: Gross National Product).

The inflation adjustment factor is calculated by dividing the GNP-PI for the first

quarter of 2014

(107.562) by the GNP-PI for the fourth quarter of 2013 (107.221). The result of this calculation is

converted from a quarterly change measurement factor to an annual change measurement factor by

raising it to the fourth power.

Operators calculating the Inflation Factor for a True-Up Period which includes some portion of the first

quarter of 2014 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form

1240 as “0.0128.” Operators using this factor for calculating the Projected Period Inflation Segment of

FCC Form 1240 should enter this number on Line C3 (January 1996 version), or Line C5 (July 1996

version) as “1.28.”

To date, the Commission has released seventy-five quarterly inflation factors for use with FCC Form

1240.

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The following table lists these factors beginning in 2007:1

Year

Quarter

Dates Covered

Inflation Factor

2007

First

Jan. 1, 2007 – Mar. 31, 2007

4.17%

2007

Second

Apr. 1, 2007 – Jun. 30, 2007

2.65%

2007

Third

Jul. 1, 2007 – Sep. 30, 2007

1.03%

2007

Fourth

Oct. 1, 2007 – Dec. 31, 2007

2.45%

2008

First

Jan. 1, 2008 – Mar. 31, 2008

2.68%

2008

Second

Apr. 1, 2008 – Jun. 30, 2008

1.11%

2008

Third

Jul. 1, 2008 – Sep. 30, 2008

3.92%

2008

Fourth

Oct. 1, 2008 – Dec. 31, 2008

0.55%

2009

First

Jan. 1, 2009 – Mar. 31, 2009

2.76%

2009

Second

Apr. 1, 2009 – Jun. 30, 2009

0.00%

2009

Third

Jul. 1, 2009 – Sep. 30, 2009

0.41%

2009

Fourth

Oct. 1, 2009 – Dec. 31, 2009

0.41%

2010

First

Jan. 1, 2010 – Mar. 31, 2010

1.08%

2010

Second

Apr. 1, 2010 – Jun. 30, 2010

1.08%

2010

Third

Jul. 1, 2010 – Sep. 30, 2010

2.09%

2010

Fourth

Oct. 1, 2010 – Dec. 31, 2010

0.41%

2011

First

Jan. 1, 2011 – Mar. 31, 2011

2.06%

2011

Second

Apr. 1, 2011 – Jun. 30, 2011

2.54%

2011

Third

Jul. 1, 2011 – Sep. 30, 2011

2.57%

2011

Fourth

Oct. 1, 2011 - Dec. 31, 2011

0.89%

2012

First

Jan.1, 2012 – Mar. 31, 2012

2.03%

2012

Second

Apr. 1 -2012 – Jun. 30, 2012

1.55%

2012

Third

Jul. 1, 2012 – Sep. 30, 2012

2.65%

2012

Fourth

Oct. 1, 2012 – Dec. 31, 2012

0.98%

2013

First

Jan. 1, 2013 – Mar. 31, 2013

1.24%

2013

Second

Apr. 1, 2013 - Jun. 30, 2013

0.65%

2013

Third

Jul. 1, 2013 -

Sep. 30, 2013

1.97%

2013

Fourth

Oct. 1, 2013 – Dec. 31, 2013

1.56%

2014

First

Jan. 1, 2013 – Mar. 31, 2014

1.28%

The Commission releases a new quarterly inflation factor for operators using FCC Form 1240 four times

each year. The inflation factor for a given quarter is usually released between three and four months after

the end of the quarter, depending on the schedule of the Department of Commerce. The release of a new

factor is posted on the Commission's Internet site at: http://www.fcc.gov/mb/csinflat.html.

Media Contact: Janice Wise at (202) 418-8165

Media Bureau Contact: Jane Frenette at (202) 418-2245

TTY: (202) 418-0432 or 1 (888) 835-5322

- FCC -

1 For pre-2007 inflation figures see DA 08-866 (rel. April 17, 2008), available at

http://www.fcc.gov/mb/csinflat.html.

2

Note: We are currently transitioning our documents into web compatible formats for easier reading. We have done our best to supply this content to you in a presentable form, but there may be some formatting issues while we improve the technology. The original version of the document is available as a PDF, Word Document, or as plain text.

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