[Federal Register Volume 85, Number 185 (Wednesday, September 23, 2020)]
[Notices]
[Pages 59826-59827]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-20950]


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DEPARTMENT OF LABOR

Office of the Secretary


Agency Information Collection Activities; Submission for OMB 
Review; Comment Request; Producer Price Index Survey

ACTION: Notice of availability; request for comments.

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SUMMARY: The Department of Labor (DOL) is submitting this Bureau of 
Labor Statistics (BLS)-sponsored information collection request (ICR) 
to the Office of Management and Budget (OMB) for review and approval in 
accordance with the Paperwork Reduction Act of 1995 (PRA). Public 
comments on the ICR are invited.

DATES: The OMB will consider all written comments that agency receives 
on or before October 23, 2020.

ADDRESSES: Written comments and recommendations for the proposed 
information collection should be sent within 30 days of publication of 
this notice to www.reginfo.gov/public/do/PRAMain. Find this particular 
information collection by selecting ``Currently under 30-day Review--
Open for Public Comments'' or by using the search function.

FOR FURTHER INFORMATION CONTACT: Anthony May by telephone at 202-693-

[[Page 59827]]

4129 (this is not a toll-free number) or by email at 
[email protected].

SUPPLEMENTARY INFORMATION: Comments are invited on: (1) Whether the 
collection of information is necessary for the proper performance of 
the functions of the Department, including whether the information will 
have practical utility; (2) if the information will be processed and 
used in a timely manner; (3) the accuracy of the agency's estimates of 
the burden and cost of the collection of information, including the 
validity of the methodology and assumptions used; (4) ways to enhance 
the quality, utility and clarity of the information collection; and (5) 
ways to minimize the burden of the collection of information on those 
who are to respond, including the use of automated collection 
techniques or other forms of information technology.
    The Producer Price Index (PPI), one of the Nation's leading 
economic indicators, designated as a Principal Federal Economic 
Indicator. The PPI consists of a family of indexes that measures the 
average change over time in the selling prices received by domestic 
producers of goods and services. About 10,000 PPIs for individual 
products and groups of products are released each month. PPIs are 
available for the output of nearly all industries in the goods-
producing sectors of the U.S. economy--mining, manufacturing, 
agriculture, fishing, and forestry--as well as natural gas, 
electricity, construction, and goods competitive with those made in the 
producing sectors, such as waste and scrap materials. The PPI data are 
widely used by the business community as well as by government. 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 demonstrate 
tremendous influence throughout the economy if they change. Policy-
makers, businesses, and researchers all require complete descriptions 
of price change trends if they are to perform effectively and 
efficiently. The expansive coverage of PPIs makes it very valuable to 
the users described above as well as many others. For additional 
substantive information about this ICR, see the related notice 
published in the Federal Register on June 5, 2020 (85 FR 34656).
    This information collection is subject to the PRA. A Federal agency 
generally cannot conduct or sponsor a collection of information, and 
the public is generally not required to respond to an information 
collection, unless the OMB approves it and displays a currently valid 
OMB Control Number. In addition, notwithstanding any other provisions 
of law, no person shall generally be subject to penalty for failing to 
comply with a collection of information that does not display a valid 
OMB Control Number. See 5 CFR 1320.5(a) and 1320.6.
    DOL seeks PRA authorization for this information collection for 
three (3) years. OMB authorization for an ICR cannot be for more than 
three (3) years without renewal. The DOL notes that information 
collection requirements submitted to the OMB for existing ICRs receive 
a month-to-month extension while they undergo review.
    Agency: DOL-BLS.
    Title of Collection: Producer Price Index Survey.
    OMB Control Number: 1220-0008.
    Affected Public: Private Sector: Businesses or other for-profits.
    Total Estimated Number of Respondents: 15,945.
    Total Estimated Number of Responses: 739,645.
    Total Estimated Annual Time Burden: 69,945 hours.
    Total Estimated Annual Other Costs Burden: $0.

    Authority: 44 U.S.C. 3507(a)(1)(D).

    Dated: September 17, 2020.
Anthony May,
Management and Program Analyst.
[FR Doc. 2020-20950 Filed 9-22-20; 8:45 am]
BILLING CODE 4510-24-P