[Federal Register Volume 79, Number 38 (Wednesday, February 26, 2014)]
[Notices]
[Pages 10843-10844]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2014-04059]


-----------------------------------------------------------------------

DEPARTMENT OF LABOR

Bureau of Labor Statistics


Proposed Collection, Comment Request

ACTION: Notice.

-----------------------------------------------------------------------

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 28, 2014.

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.

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.

[[Page 10844]]

Failure to calculate these 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.

----------------------------------------------------------------------------------------------------------------
                                                                                   Average  Time     Estimated
             Form                   Total          Frequency           Total       per response    total  burden
                                 respondents                         responses       (minutes)        (hours)
----------------------------------------------------------------------------------------------------------------
BLS 1810A, A1, B, C, C1, and            5,836  once.............            5836             120          11,672
 E.
BLS 473P.....................          26,250  monthly..........     * 1,260,000               5         105,000
                              ----------------------------------------------------------------------------------
    Totals...................          32,086  .................       1,265,386  ..............        116,672
----------------------------------------------------------------------------------------------------------------
* 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 20th day of February 2014.
Kimberley D. Hill,
Chief, Division of Management Systems, Bureau of Labor Statistics.
[FR Doc. 2014-04059 Filed 2-25-14; 8:45 am]
BILLING CODE 4510-24-P