[Federal Register Volume 88, Number 211 (Thursday, November 2, 2023)]
[Notices]
[Pages 75331-75332]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[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 [email protected].

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:
     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.
    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
                              ------------------                 -----------------------------------------------
    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