Notice2023-24223
Information Collection Activities; Comment Request
Primary source
Metadata and text below are from the Federal Register, a public-domain U.S. government work. Always verify the official published version before relying on it for any legal matter.
Published
November 2, 2023
Issuing agencies
Labor DepartmentLabor Statistics Bureau
Abstract
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. 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.
Full Text
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<title>Federal Register, Volume 88 Issue 211 (Thursday, November 2, 2023)</title>
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[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Notices]
[Pages 75331-75332]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2023-24223]
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DEPARTMENT OF LABOR
Bureau of Labor Statistics
Information Collection Activities; Comment Request
AGENCY: Bureau of Labor Statistics, Department of Labor.
ACTION: Notice of information collection; request for comment.
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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. 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 January 2, 2024.
ADDRESSES: Send comments to Nora Kincaid, BLS Clearance Officer,
Division of Management Systems, Bureau of Labor Statistics, Room G225,
2 Massachusetts Avenue NE, Washington, DC 20212. Written comments also
may be transmitted by email to <a href="/cdn-cgi/l/email-protection#98dad4cbc7c8cad9c7c8edfaf4f1fbd8faf4ebb6fff7ee"><span class="__cf_email__" data-cfemail="71333d222e2123302e2104131d181231131d025f161e07">[email protected]</span></a>.
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) is a Principal Federal Economic
Indicator consisting of a family of indexes that measures the average
change over time in the selling prices received by domestic producers
of goods and services. PPIs measure price change from the perspective
of the seller. This contrasts with other measures, such as the Consumer
Price Index (CPI), that measure price change from the purchaser's
perspective. About 10,000 PPIs for individual products and groups of
products are released each month. The PPI data are widely used by the
business community as well as by government and academia. In
particular, the data are used as an economic indicator playing a
crucial role in market analysis, as a deflator of other economic
series, the basis for the calculation of price adjustments for
contracts and purchase agreements, and as an input to economic
research. These uses highlight the necessity of the PPI in order to
understand the economy.
PPI data meets a wide range of government needs by providing a
description of the magnitude and composition of price changes within
the economy. Government agencies view these indexes as sensitive
indicators of the economic environment and closely follow each monthly
release of statistics. PPI data are vital in helping the President and
Congress set fiscal spending targets. The Federal Reserve Board Open
Market Committee monitors producer prices to help determine monetary
policy. Federal policy makers at the Department of the Treasury and the
Council of Economic Advisors utilize these statistics to help interpret
the economic environment and make decisions based upon these
interpretations. Many dollar-denominated measurements of economic
performance, such as the Gross Domestic Product (GDP), require accurate
price data for the conversion of nominal dollars into real dollars.
National income accounting figures must also be inflation free in order
to remain relevant to fiscal and monetary policy makers setting
objectives. Price adjustment clauses in government purchasing contracts
commonly use one or more PPIs. According to a conservative estimate,
hundreds-of-billions of dollars' worth of contracts and purchase
agreements employ PPIs as part of price adjustment clauses. Failure to
calculate these price data would prolong the time frame needed for
accurate recognition of and appropriate adaptation to economic events.
The private sector also makes extensive use of PPI data.
Researchers commonly use producer prices to probe and measure the
interaction of market forces. Private firms use PPIs for contract
escalation and price adjustment. The Internal Revenue Service (IRS)
recommends using PPI data for certain kinds of tax related inventory
accounting, such as Last-In-First-Out (LIFO). Private businesses
extensively use PPIs for planning and operations. Firms often compare
the prices they pay and receive with changes in appropriate PPIs.
Economic researchers and forecasters also put PPIs to regular use.
They use PPI data to better understand market forces. Research topics
requiring producer price data include studying elasticities, potential
lead and lag structures within price changes, and the identification of
prices that cause major influence throughout the economy. Policy-
makers, businesses, and researchers all require complete descriptions
of price change trends if they are to perform effectively.
The expansive coverage of PPIs makes them very valuable to the
users described above as well as many others.
II. Current Action
Office of Management and Budget clearance is being sought for the
extension of the PPI survey.
The PPI collection is not a one-time project with an end date. The
purpose of the PPI collection is to accumulate
[[Page 75332]]
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 benefit from accurate,
timely, and relevant description of price trends. Legislators and
government agencies use the PPI to assist them with developing policy
and evaluating the markets. 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. The price
adjustment clauses of purchase agreements use monthly PPIs. 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 provide current accurate monthly
statistics would necessitate more complex clauses in contracts and
prolong the time required to determine price changes for purposes of
contract adjustments.
III. Desired Focus of Comments
The Bureau of Labor Statistics is particularly interested in
comments that:
<bullet> 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.
<bullet> 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.
<bullet> Enhance the quality, utility, and clarity of the
information to be collected.
<bullet> 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.
Title of Collection: Producer Price Index Survey.
OMB Number: 1220-0008.
Type of Review: Extension without change of a currently approved
collection.
Affected Public: Private Sector.
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Number of Average time Estimated
Data collection Number of Frequency responses (per per response total burden
respondents year) (minutes) (hours)
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Initiation BLS Forms 1810A, 4,305........... Once........... 4,305 120 8,610
C, C1, and E.
Data Quality Verification Subset of 4,305 Once........... 340 15 85
Calls. initiation
respondents
(Approximately
8%).
BLS IDCF..................... 11,107.......... Monthly........ 660,537 5 55,045
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Totals................... 15,412.......... ............... 665,182 .............. 63,740
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* For monthly repricing, PPI requests repricing of 55,045 items each month.
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 30th day of October 2023.
Eric Molina,
Chief, Division of Management Systems, Branch of Policy Analysis.
[FR Doc. 2023-24223 Filed 11-1-23; 8:45 am]
BILLING CODE 4510-24-P
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