Inflation Adjustment
/ɪnˈfleɪʃən əˈdʒʌstmənt/
Definitions
- (n.) A legal or contractual provision that modifies monetary amounts to reflect changes in the price level, maintaining the real value against inflation.
The lease agreement includes an inflation adjustment clause to increase rent annually based on the consumer price index.
Forms
- inflation adjustment
Related terms
See also
Commentary
Inflation adjustments are critical in long-term contracts to preserve value amid economic changes; precise reference to the inflation measure used is advisable in drafting.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.