Federal Communications Commission	DA 24-341



DA 24-341

     			Released: April 9, 2024

MEDIA BUREAU AND OFFICE OF ECONOMICS AND ANALYTICS ACTION

FOURTH QUARTER 2023 INFLATION ADJUSTMENT FIGURES FOR CABLE OPERATORS USING FCC RATE REGULATION 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 chain-type price indexes were obtained from the BEA Table 1.7.4 (Price Indexes for Gross Domestic Product, Gross National Product, and Net National Product) Line 4 (Gross National Product) on March 28, 2024. Table 1.7.4 can be found at this link: https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDNdLCJkYXRhIjpbWyJjYXRlZ29yaWVzIiwiU3VydmV5Il0sWyJOSVBBX1RhYmxlX0xpc3QiLCI0MiJdXX0=. 


	Operators filing FCC Form 1240 may make an adjustment based on quarterly figures.  The fourth quarter 2024 inflation factor for operators using FCC Form 1240 is 1.63%.  The adjustment factor of 1.63% is a measure of the annualized change in prices occurring over the period from October 1, 2023 to December 31, 2023.  The inflation adjustment factor is calculated by dividing the GNP-PI for the fourth quarter of 2023 (123.196) by the GNP-PI for the third quarter of 2023 (122.699).  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.  We then convert the calculation to an inflation adjustment factor by subtracting one.   

	Operators calculating the Inflation Factor for a True-Up Period that includes some portion of the third quarter of 2023 should enter the inflation factor on the appropriate lines of Worksheet 1 of FCC Form 1240 as “0.0163.”  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 “1.0163”.

	Each quarter the Commission releases a quarterly inflation factor for use with FCC Form 1240.  The following table lists these factors beginning in 2018. For pre-2017 inflation figures see DA 17-646, 32 FCC Rcd 5479 (rel. Jul. 5, 2017), available at https://www.fcc.gov/general/inflation-updates-forms-1210-and-1240.



Year  
Quarter
Dates Covered
Inflation Factor
2018
First
Jan. 1, 2018 – Mar. 31, 2018
2.20%
2018
Second
Apr. 1, 2018 – Jun. 30, 2018
3.04%
2018
Third
Jul. 1, 2018 – Sep. 30, 2018
1.81%
2018
Fourth
Oct. 1, 2018 – Dec. 31, 2018
1.68%
2019
First
Jan. 1, 2019 – Mar. 31, 2019
0.90%
2019
Second
Apr. 1, 2019 – Jun. 30, 2019
2.42%
2019
Third
Jul. 1, 2019 – Sep. 30, 2019
1.81%
2019
Fourth
Oct. 1, 2019 – Dec. 31, 2019
1.28%
2020
First
Jan. 1, 2020 – Mar. 31, 2020
1.41%
2020
Second
Apr. 1, 2020 – Jun. 30, 2020
-1.82%
2020
Third
Jul. 1, 2020 – Sep. 30, 2020
3.51%
2020
Fourth
Oct. 1, 2020 – Dec. 31, 2020
2.04%
2021
First
Jan. 1, 2021 – Mar. 31, 2021
4.32%
2021
Second
Apr. 1, 2021 – Jun. 30, 2021
6.07%
2021
Third
Jul. 1, 2021 – Sep. 30, 2021
5.95%
2021
Fourth
Oct. 1, 2021 – Dec. 31, 2021
7.13%
2022
First
Jan. 1, 2022 – Mar. 31, 2022
8.19%
2022
Second
Apr. 1, 2022 – Jun. 30, 2022
9.00%
2022
Third
Jul. 1, 2022 – Sep. 30, 2022
4.37%
2022
Fourth
Oct. 1, 2022 – Dec. 31, 2022
3.88%
2023
First
Jan. 1, 2023 – Mar. 31, 2023
4.14%
2023
Second
Apr. 1, 2023 – Jun. 30, 2023
1.74%
2023
Third
Jul. 1, 2023 – Sep. 30, 2023
3.33%
2023
Fourth
Oct. 1, 2023 – Dec. 31, 2023
1.63%

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. 

For additional information, contact Jake Riehm, jake.riehm@fcc.gov, (202) 418-2166 or Zaira Gonzalez, zaira.gonzalez@fcc.gov, (202) 418-2743.

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


–FCC–
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