DA 18-692

	MEDIA BUREAU ACTION                              	July 03, 2018

FIRST QUARTER 2018 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC FORM 1240 NOW AVAILABLE

This Public Notice is applicable to rate-regulated cable operators that use FCC Forms to justify their cable rates. Pursuant to 47 CFR § 76.922(d)(2) and § 76.922(e)(2) of the Commission’s rules, cable operators may adjust the non-external cost portion of their rates for inflation.
  Cable operators adjusting the non-external cost portion of their rates for inflation should follow the instructions provided with the applicable FCC Form.  All inflation adjustment figures 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 indexes from the BEA news release dated June 28, 2018 (BEA 18-31) at Table 6 (Addenda: Gross National Product).

Operators filing FCC Form 1240 may make an adjustment based on quarterly figures.  The first quarter of 2018 inflation factor for operators using FCC Form 1240 is 2.20%.  The adjustment factor of 2.20% is a measure of the annualized change in prices occurring over the period from January 1, 2018 to March 31, 2018.  The inflation adjustment factor is calculated by dividing the GNP-PI for the first quarter of 2018 (114.988) by the GNP-PI for the fourth quarter of 2017 (114.363).  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 fourth quarter of 2017 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC
Form 1240 as “0.0220.”  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 “1.0220”.


	To date, the Commission has released ninety-one quarterly inflation factors for use with FCC Form 1240.  The following table lists these factors beginning in 2013: For pre-2013 inflation figures see DA 13-2056, 28 FCC Rcd 14654 (rel. October 23, 2013), available at https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240.


Year  
Quarter
Dates Covered
Inflation Factor
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, 2014 – Mar. 31, 2014
1.28%
2014
Second
Apr. 1, 2014 – Jun. 30, 2014
2.11%
2014
Third
Jul. 1, 2014 – Sep. 30, 2014
1.42%
2014
Fourth
Oct. 1, 2014 – Dec. 31, 2014
0.12%
2015
First
Jan. 1, 2015 – Mar. 31, 2015
-0.03%
2015
Second
Apr. 1, 2015 – Jun. 30, 2015
	  2.10%
2015
Third
Jul. 1, 2015 – Sep. 30, 2015
1.32%
2015
Fourth
Oct. 1, 2015 – Dec. 31, 2015
0.87%
2016
First
Jan. 1, 2016 – Mar. 31, 2016
0.41%
2016
Second
Apr. 1, 2016 – Jun. 30, 2016
2.30%
2016
Third
Jul. 1, 2016 – Sep. 30, 2016
1.42%
2016
Fourth
Oct. 1, 2016 – Dec. 31, 2016
2.07%
2017
First
Jan. 1, 2017 – Mar. 31, 2017
1.96%
2017
Second
Apr. 1, 2017 – Jun. 30, 2017
1.01%
2017
Third
Jul. 1, 2017 – Sep. 30, 2017
2.09%
2017
Fourth
Oct. 1, 2017-Dec. 31, 2017
2.33%
2018
First
Jan.1, 2018 – Mar. 31, 2018
2.20%

	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:  https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240.

Media Contact:  Janice Wise at (202) 418-8165
Media Bureau Contact:  Kevin Green at (202) 418-2127
TTY: (202) 418-0432 or 1 (888) 835-5322

					- FCC -