Kjøpekraftjustering

Kjøpekraftjustering, often translated as purchasing power adjustment or inflation adjustment, is a method used to account for changes in the general price level of goods and services over time. Its primary purpose is to ensure that monetary values, such as wages, pensions, or financial assets, retain their real worth despite inflation. Without such adjustments, the nominal value of money might increase, but its actual ability to purchase goods and services could decrease.

The process typically involves using an index that measures inflation, most commonly the Consumer Price Index (CPI). The CPI tracks the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. By applying a multiplier derived from the CPI, a past monetary amount can be converted into its equivalent value in current prices, or vice versa. For example, if inflation has been 2% per year, a salary of 100,000 NOK today would need to have been approximately 98,040 NOK a year ago to have the same purchasing power.

Kjøpekraftjustering is widely applied in various economic contexts. It is crucial for maintaining the living standards of pensioners and recipients of social benefits, ensuring their incomes keep pace with rising costs. It is also used in wage negotiations to prevent a real decline in earnings and in financial contracts and investments to preserve the real value of returns. In governmental budgeting and economic analysis, it helps in comparing economic figures across different years accurately.