Indexation of contracts
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, in the U.S., Employment Cost Index (ECI) are the most frequently used indexes.[3]
See also
References
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<references />, or <references group="..." />External links
- 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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