noun
- the practice of adjusting wages, prices, or other economic values automatically based on changes in a price index or cost of living measure
Usage: economics; finance
Examples
- The union negotiated for wage indexations tied to inflation rates.
- Government benefits include automatic indexations to maintain purchasing power.
- The contract specified annual indexations based on the consumer price index.
- Many pension plans feature indexations to protect retirees from rising costs.
- The company’s pricing strategy includes indexations for raw material costs.
- Social security payments receive regular indexations to account for economic changes.