[Federal Register Volume 76, Number 35 (Tuesday, February 22, 2011)]
[Notices]
[Pages 9814-9815]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2011-3833]
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DEPARTMENT OF LABOR
Bureau of Labor Statistics
Proposed Collection, Comment Request
ACTION: Notice.
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SUMMARY: The Department of Labor, as part of its continuing effort to
reduce paperwork and respondent burden, conducts a pre-clearance
consultation program to provide the general public and Federal agencies
with an opportunity to comment on proposed and/or continuing
collections of information in accordance with the Paperwork Reduction
Act of 1995 (PRA95) [44 U.S.C. 3506(c)(2)(A)]. This program helps to
ensure that requested data can be provided in the desired format,
reporting burden (time and financial resources) is minimized,
collection instruments are clearly understood, and the impact of
collection requirements on respondents can be properly assessed. The
Bureau of Labor Statistics (BLS) is soliciting comments concerning the
proposed extension without change of a currently approved collection
for the ``Producer Price Index'' survey. A copy of the proposed
information collection request (ICR) can be obtained by contacting the
individual listed below in the ADDRESSES section of this notice.
DATES: Written comments must be submitted to the office listed in the
ADDRESSES section of this notice on or before April 25, 2011.
ADDRESSES: Send comments to Nora Kincaid, BLS Clearance Officer,
Division of Management Systems, Bureau of Labor Statistics, Room 4080,
2 Massachusetts Avenue, NE., Washington, DC 20212. Written comments
also may be transmitted by fax to 202-691-5111 (this is not a toll free
number).
FOR FURTHER INFORMATION CONTACT: Nora Kincaid, BLS Clearance Officer,
at 202-691-7628 (this is not a toll free number). (See ADDRESSES
section.)
SUPPLEMENTARY INFORMATION:
I. Background
The Producer Price Index (PPI), one of the Nation's leading
economic indicators, is used as a measure of price movements, as an
indicator of inflationary trends, for inventory valuation, and as a
measure of purchasing power of the dollar at the primary-market level.
It also is used for market and economic research and as a basis for
escalation in long-term contracts and purchase agreements.
Producer Price Index data provide a description of the magnitude
and composition of price change within the economy, and serve a wide
range of governmental needs. This family of indexes are closely
followed, monthly statistics which are viewed as sensitive indicators
of the economic environment. Price data are vital in helping both the
President and Congress set fiscal-spending targets. Producer prices are
monitored by the Federal Reserve Board Open Market Committee to help
decide monetary policy. Federal policy-makers at the Department of
Treasury and the Council of Economic Advisors utilize these statistics
to help form and evaluate monetary and fiscal measures and to help
interpret the general business environment. In addition, it is common
to find one or more PPIs, alone or in combination with other measures,
used to escalate the delivered price of goods for government purchases.
In addition to governmental uses, PPI data are regularly put to use
by the private sector. Private industry uses PPI data for contract
escalation. For one particular method of tax-related Last-In-First-Out
(LIFO) inventory accounting, the Internal Revenue Service suggests that
firms use PPI data for making calculations. Private businesses make
extensive use of industrial-price data for planning and operations.
Price trends are used to assess the condition of markets. Firms
commonly compare the prices they pay for material inputs as well as
prices they receive for products that they make and sell with changes
in similar PPIs.
Economic researchers and forecasters also put the PPI to regular
use. PPIs are widely used to probe and measure the interaction of
market forces. Some examples of research topics that require extensive
price data include: The identification of varying price elasticities
and the degree of cost pass-through in the economy, the identification
of potential lead and lag structures among price changes, and the
identification of prices which exert major impacts throughout market
structures.
[[Page 9815]]
II. Current Action
Office of Management and Budget clearance is being sought for the
Producer Price Index survey.
The PPI collection is not a one-time project with an end date. The
purpose of the PPI collection is to accumulate data for the ongoing,
monthly publication of the PPI family of indexes. The Bureau of Labor
Statistics must continue collecting data for the PPI since both policy
and business planning are affected by the completeness of the
description of price trends. Dollar-denominated measures of economic
performance, such as Gross Domestic Product, require accurate price
data in order to convert nominal to constant-dollar values. Inflation-
free national income accounting figures are vital to fiscal and
monetary policy-makers when setting objectives and targets. It is
conservatively estimated that hundreds-of-billions of dollars worth of
contracts and purchase agreements employ PPIs as part of price-
adjustment clauses. Failure to calculate data would tend to extend the
time frame required for accurate recognition of and appropriate
adaptation to economic events.
III. Desired Focus of Comments
The Bureau of Labor Statistics is particularly interested in
comments that:
Evaluate whether the proposed collection of information is
necessary for the proper performance of the functions of the agency,
including whether the information will have practical utility.
Evaluate the accuracy of the agency's estimate of the
burden of the proposed collection of information, including the
validity of the methodology and assumptions used.
Enhance the quality, utility, and clarity of the
information to be collected.
Minimize the burden of the collection of information on
those who are to respond, including through the use of appropriate
automated, electronic, mechanical, or other technological collection
techniques or other forms of information technology, e.g., permitting
electronic submissions of responses.
Type of Review: Extension without change of a currently approved
collection
Agency: Bureau of Labor Statistics.
Title: Producer Price Index Survey.
OMB Number: 1220-0008.
Affected Public: Private Sector.
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Average time Estimated
Form Total Frequency Total per response total burden
respondents responses (min) (hrs)
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BLS 1810A, A1, B, C, C1, and E.. 6,582 once 6,582 120 13,164
BLS 473P........................ 26,250 monthly *1,260,000 18 378,000
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Totals...................... 32,832 .............. 1,266,582 .............. 391,164
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*For monthly repricing, an average of 4 forms are sent to each respondent or on average PPI requests repricing
of 105,000 items each month.
Total Burden Cost (capital/startup): $0
Total Burden Cost (operating/maintenance): $0
Comments submitted in response to this notice will be summarized
and/or included in the request for Office of Management and Budget
approval of the information collection request; they also will become a
matter of public record.
Signed at Washington, DC, this 10th day of February 2011.
Kimberley D. Hill,
Chief, Division of Management Systems, Bureau of Labor Statistics.
[FR Doc. 2011-3833 Filed 2-18-11; 8:45 am]
BILLING CODE 4510-24-P