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THIRD QUARTER 2008 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORM 1240 NOW AVAILABLE

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Released: December 31, 1969
PUBLIC NOTICE
FEDERAL COMMUNICATIONS COMMISSION
445 12TH STREET, S.W.
WASHINGTON, D.C. 20554

DA 08-2825

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

MEDIA BUREAU ACTION

January 2, 2009

THIRD QUARTER 2008 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 Third Quarter 2008 inflation factor for operators using FCC Form 1240 is 3.92%.
The adjustment factor of 3.92% is a measure of the annualized change in prices occurring over the period
from July 1, 2008 to September 30, 2008. 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 December 23, 2008 (BEA 08-59) at Table 6 (Addenda: Gross National Product).
The inflation adjustment factor is calculated by dividing the GNP-PI for the Third Quarter of 2008
(123.117) by the GNP-PI for the Second Quarter of 2008 (121.938). 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 Third
Quarter of 2008 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form
1240 as "0.0392." 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 "1.0392."
To date, the Commission has released fifty-three quarterly inflation factors for use with FCC Form 1240.

The following table lists these factors beginning in 2001:1

Year

Quarter

Dates Covered

Inflation Factor

2001
First
Jan. 1, 2001 Mar. 31, 2001
3.23%
2001
Second
Apr. 1, 2001 Jun. 30, 2001
2.08%
2001
Third
Jul. 1, 2001 Sep. 30, 2001
2.25%
2001
Fourth
Oct. 1, 2001 Dec. 31, 2001
(0.11%)
2002
First
Jan. 1, 2002 Mar. 31, 2002
1.21%
2002
Second
Apr. 1, 2002 June 30, 2002
1.24%
2002
Third
Jul. 1, 2002 Sep. 30, 2002
1.02%
2002
Fourth
Oct. 1, 2002 Dec. 31, 2002
1.78%
2003
First
Jan. 1, 2003 Mar. 31, 2003
2.39%
2003
Second
Apr. 1, 2003 Jun. 30, 2003
1.00%
2003
Third
Jul. 1, 2003 Sep. 30, 2003
1.66%
2003
Fourth
Oct.1, 2003 Dec. 31, 2003
1.50%
2004
First
Jan. 1, 2004 Mar. 31, 2004
2.84%
2004
Second
Apr. 1, 2004 Jun. 30, 2004
3.23%
2004
Third
Jul. 1, 2004 Sep. 30, 2004
1.43%
2004
Fourth
Oct. 1, 2004 Dec. 31, 2004
2.26%
2005
First
Jan. 1, 2005 Mar. 31, 2005
2.89%
2005
Second
Apr. 1, 2005 Jun. 30, 2005
2.57%
2005
Third
Jul. 1, 2005 Sep. 30, 2005
3.31%
2005
Fourth
Oct. 1, 2005 - Dec. 31, 2005
3.47%
2006
First
Jan. 1, 2006 - Mar. 31, 2006
3.12%
2006
Second
Apr. 1, 2006 - Jun. 30, 2006
3.31%
2006
Third
July 1, 2006 Sep. 30, 2006
1.89%
2006
Fourth
Oct. 1, 2006 Dec. 31, 2006
1.67%
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%

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: Mary Diamond at (202) 418-2388
Media Bureau Contact: Jane Frenette at (202) 418-2245
TTY: (202) 418-0432 or 1 (888) 835-5322


1 For pre-2001 inflation figures see DA 06-1987 (rel. October 5, 2006), available at
http://www.fcc.gov/mb/csinflat.html.

--FCC--

2

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