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X-WASHINGTON, D.C. 20554`(# DA 97692 ă  yx\ dddhy  aE#G\  P6G;P#News media information 202/4180500 FaxOnDemand 202/4182830 Internet: http://www.fcc.gov ftp.fcc.gov  X-#Xj\  P6G;9XP# CABLE SERVICES ACTION ă`o(# April 8, 1997 ă  Xi - yFOURTH QUARTER 1996 INFLATION ADJUSTMENT FIGURE  "y p "y FOR CABLE OPERATORS USING FCC FORM 1240 NOW AVAILABLE  X; -    {xAs described in the instructions for FCC Form 1240, cable operators may adjust the non xexternal cost portion of their rates for inflation based on quarterly figures released by the  xCommission. The Fourth Quarter 1996 Inflation Factor for operators using FCC Form 1240 is 1.83%.   xThe adjustment factor of 1.83% is a measure of the annualized change in prices occurring  xover the period from October 1, 1996 to December 31, 1996. The factor is based on the changes  x]in the quarterly Gross National Product Price Index (GNPPI) published by the Bureau of  xEconomic Analysis (BEA) of the United States Department of Commerce. The indexes used, the  x-Gross National Product: Chaintype price indexes for the third quarter 1996 and the fourth quarter  x1996, were obtained from Table 4 of the BEA news release dated March 28, 1997 (BEA 9707).   xThe inflation adjustment factor is calculated by taking the GNPPI from the fourth quarter  xof 1996 (110.7) and dividing by the GNPPI for the third quarter of 1996 (110.2). The result  xof this calculation is converted from a quarterly change measurement factor to an annual change measurement factor by raising it to the fourth power.   xOperators calculating the Inflation Factor for a TrueUp Period which includes some  xportion of the fourth quarter of 1996 should enter the inflation factor on the appropriate lines of  xWorksheet 1 of FCC Form 1240 as "0.0183". Operators using this factor for calculating the  xProjected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 as "1.0183".   xTo date the Commission has released six quarterly inflation factors for use with FCC Form 1240. The following table lists these factors:   X$-x Year` `  Quarterhh@Dates Covered   Inflation Factor  X&- x1995` `  ThirdhhJul. 1, 1995h Sep. 30, 1995  xx2.22%  X'-x1995` `  FourthhhOct. 1, 1995h Dec. 31, 1995  xx2.22%  Xr(-x1996` `  FirsthhJan. 1, 1996h Mar. 31, 1996  xx2.39%  X[)-x1996` `  SecondhhApr. 1, 1996h Jun. 30, 1996  xx2.22%  XD*-x1996` `  ThirdhhJul. 1, 1996h Sep. 30, 1996  xx2.21%  X-+-x1996` `  FourthhhOct. 1, 1996h Dec. 31, 1996  xx1.83%-+,,,!*e@d;[!,L\ '#k \ hԌ  xThe Commission releases a new quarterly inflation factor for operators using FCC Form  x1240 four times each year. The inflation factor for a given quarter is usually released between  xthree and four months after the end of the quarter, depending on the schedule of the Department  x{of Commerce. The release of a new factor is posted on the Commission's Internet site at: http://www.fcc.gov/Bureau/Cable/WWW/csb.html. Media Contact: Morgan Broman at (202) 4182385. Cable Services Bureau Contact: Hugh Boyle at (202) 4182286.  @ԩFCCTP