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Contract Escalation

Consumer Price Indexes often are used to escalate or adjust payments for rents, wages, alimony, child support, and other obligations that may be affected by changes in the cost of living. Learn more about how to use the CPI for escalating contracts.

Producer Price Indexes can also be used in contract escalation. See the page about how to use PPIs for escalating contracts. You also can watch our video.

The Employment Cost Index is increasingly used by businesses as an escalator to adjust long-term sales and purchasing contracts and to adjust wage rates. See how to use the ECI for escalating contracts. We also have a video on the ways you can use the ECI, including for contract adjustments.

Last Modified Date: March 6, 2024