1. the practice of linking wages, prices, or other economic values to an index, especially a price index, so they automatically adjust with inflation
Usage: economics; finance
2. the process of creating an index or systematic arrangement of information
Usage: formal

Examples

• The government introduced wage indexation to protect workers from inflation.
• Social security benefits are subject to automatic indexation based on cost-of-living changes.
• The company’s pension plan includes indexation to maintain purchasing power.
• Without indexation, fixed incomes lose value during periods of high inflation.
• The indexation of the library’s collection took several months to complete.
• Database indexation improves search performance significantly.