In statistics relating to national economies, the indexation of contracts also called "index linking" and "contract escalation" is a procedure when a contract includes a periodic adjustment to the prices paid for the contract provisions based on the level of a nominated price index. The purpose of indexation is to readjust contracts to account for inflation.[1][2] In the United States, the consumer price index (CPI), producer price index (PPI) and Employment Cost Index (ECI) are the most frequently used indexes.[3]
See also
editReferences
edit- ^ "INDEXATION OF CONTRACTS". Glossary of statistical terms. OECD. July 8, 2005. Retrieved 2009-05-07.
- ^ "BLS Information". Glossary. U.S. Bureau of Labor Statistics Division of Information Services. February 28, 2008. Retrieved 2009-05-05.
- ^ "Contract Escalation". BLS Information. U.S. Bureau of Labor Statistics. July 27, 2006. Retrieved 2009-05-07.
External links
edit- Contract escalation in glossary, U.S. Bureau of Labor Statistics Division of Information Services
- INDEXATION OF CONTRACTS, Glossary of Statistical Terms
- Contract Escalation
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