Inflation Index
/ɪnˈfleɪʃən ˈɪndɛks/
Definitions
- (n.) A statistical measure used in contracts and legal documents to adjust monetary values according to changes in the rate of inflation.
The lease agreement included an inflation index to adjust the rent annually.
- (n.) In legal contexts, a benchmark or reference number reflecting the change in general price levels, employed to preserve the real value of payments or obligations.
The child support payments were modified based on the inflation index to keep up with cost of living increases.
Forms
- inflation index
- inflation indexes
Related terms
See also
Commentary
Often incorporated into contracts to ensure fairness over time by correlating payments to inflation rates, precise definition and reference to the exact inflation index used are crucial for enforceability.
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.