Indeksikorotusta

Indeksikorotusta, often translated as indexation or index-linking, is a method used to adjust the value of monetary amounts or contracts to keep pace with inflation. The primary goal is to maintain the real value of a sum of money over time, preventing its purchasing power from being eroded by rising prices. This is typically achieved by tying the value to a specific price index, such as the consumer price index (CPI) or a more specialized index relevant to the particular asset or service.

When an amount is indexed, it is periodically adjusted based on the percentage change in the chosen index. For example, if a contract has an indexed payment of 1000 units and the index increases by 5% over a period, the next payment would be adjusted to 1050 units. This process is common in various financial and contractual arrangements.

Indeksikorotusta is frequently applied to long-term contracts, such as leases, loans, pensions, and government bonds. It can also be used in wage agreements to ensure that employees' salaries keep up with the cost of living. While it protects against inflation, it also means that values can decrease if the index falls, although this is less common in periods of general inflation. The specific index used and the frequency of adjustments are usually stipulated in the original agreement.