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. In the United States, the consumer price index (CPI), producer price index (PPI) and Employment Cost Index (ECI) are the most frequently used indexes.
See also Indexation Purchasing power Bureau of Labor Statistics
References
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