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S-WASHINGTON, D.C. 20554`(# DA 98663 ă  yyx) dddhy  aE#G\  P6G;مP#News media information 202/4180500 FaxOnDemand 202/4182830 Internet: http://www.fcc.gov ftp.fcc.gov  aE $I   $I   X-#Xj\  P6G;ynXP#  CABLE SERVICES BUREAU ACTION ă`o(# April 8, 1998 ă  X - yFOURTH QUARTER 1997 INFLATION ADJUSTMENT FIGURE pFOR 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 1997 Inflation Factor for operators using FCC Form 1240 is 1.43%.   xThe adjustment factor of 1.43% is a measure of the annualized change in prices occurring  xover the period from October 1, 1997 to December 31, 1997. 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  xzwere the Gross National Product: Chaintype price indexes for the third quarter 1997 and the  x=fourth quarter 1997. These indexes were obtained from Table 4 of the BEA news release dated March 26, 1998 (BEA 9807).   xThe inflation adjustment factor is calculated by taking the GNPPI from the fourth quarter  xzof 1997 (113.02) and dividing by the GNPPI for the third quarter of 1997 (112.62). 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 1997 should enter the inflation factor on the appropriate lines of  xWorksheet 1 of FCC Form 1240 as "0.0143." Operators using this factor for calculating the  xProjected Period Inflation Segment of FCC Form 1240 should enter this number on Line C3 (January, 1996 version), or Line C5 (July, 1996 version), as "1.0143." $,,,#e@d;[!,L) '#8 ) h   m $I xTo date, the Commission has released ten quarterly inflation factors for use with FCC Form 1240. The following table lists these factors: $I   X- Year x` ` Quarter hhDates Covered ppInflation Factor  Xv-1995x` ` Third hhJul. 1, 1995 Sep. 30, 1995  2.22%  X_-1995x` ` Fourth hhOct. 1, 1995 Dec. 31, 1995  2.22%(#h  XH- 1996x` ` First hhJan. 1, 1996 Mar. 31, 1996  2.39%  X1-1996x` ` Second hhApr. 1, 1996 Jun. 30, 1996  2.22%  X -1996x` ` Third hhJul. 1, 1996 Sep. 30, 1996  2.21%  X -1996x` ` Fourth` hhOct. 1, 1996 Dec. 31, 1996  1.83%(#  X -1997x` ` First hhJan. 1, 1997 Mar. 31, 1997  2.70%(#  X -1997x` ` SecondhhApr. 1, 1997 Jun. 30, 1997  1.77%  X -1997x` ` Third hhJul. 1, 1997 Sep. 30, 1997h  1.43%(#   X -1997x` ` FourthhhOct. 1, 1997 Dec. 31, 1997p  1.43%(#    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) 4182358 Cable Services Bureau Contact: Patrick Boateng at (202) 4182370 TTY: (202) 4187172. $I   $I   Xe-@FCC#&a\  P6G;u&P#у