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| Definition: |
A procedure whereby a long-term contract for the provision of goods or services includes a periodic adjustment to the prices paid for the goods or services based on the increase or decrease in the level of a nominated price index. The purpose of indexation is to take inflationary risk out of the contract.
Also known as “index linking” and “contract escalation.”.
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| Source
Publication: |
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ILO, IMF, OECD, Eurostat, UNECE, World Bank, 2004, Producer Price Index Manual: Theory and Practice, International Monetary Fund, Washington DC.
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| Statistical
Theme: Prices and purchasing power partities |
| Created
on Tuesday, August 13, 2002 |
| Last
updated on Friday, July 08, 2005 |
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