Common use of Inflation Adjustments Clause in Contracts

Inflation Adjustments. Whenever any provision of this Agreement requires that an amount be Adjusted for Inflation, such adjustment will be based on the Inflation Index. The amount of the adjustment will be determined by multiplying the amount to be adjusted by a fraction, the denominator of which is the Inflation Index for the month in which the Effective Date occurs and the numerator of which is the Inflation Index for the month immediately prior to the month for which the adjustment for inflation is to be made. If the Inflation Index is discontinued, then there will be substituted therefore a comparable index for use in calculating changes in the cost of living or purchasing power of consumers published by any other governmental agency, major bank, financial institution, or university or by another recognized financial publication, with such adjustments as are reasonably necessary to produce substantially the same results as would have been obtained under the unavailable index.