in·​dex·​ation ˌin-dek-ˈsā-shən How to pronounce indexation (audio)
: a system of economic control in which certain variables (such as wages and interest) are tied to a cost-of-living index so that both rise or fall at the same rate and the detrimental effect of inflation is theoretically eliminated

Examples of indexation in a Sentence

Recent Examples on the Web After all, alternatives are supposed to help diversify a portfolio and offer some downside protection from indexation. Jessica Mathews, Fortune, 3 Nov. 2022 That reflects 17% indexation to Brent, 50% higher than the 11% cited in contracts signed a year ago. Wood MacKenzie, Forbes, 16 June 2022 Inadvertent indexation of staging or development sites happens all the time and can go unnoticed for weeks. Rashad Nasir, Forbes, 22 Apr. 2022 In these days of over-indexation and overwrought algorithmic trading, the strongest players of a sector often soar and crash along with its weakest, depending on the latest investment fad. Roger Conrad, Forbes, 27 Jan. 2022 Else, it will be treated as long-term investments with a 20% tax with indexation benefit, meaning purchase price adjusted for inflation index. Mimansa Verma, Quartz, 19 Jan. 2022 One vestige is indexation, under which the country links costs such as wages to inflation to protect the purchasing power of companies and average Brazilians in the midst of spiraling prices. Samantha Pearson, WSJ, 11 Dec. 2021 Second, there’s not only less Russian pipe capacity but long-term contracts with Russia are less flexible, after buyers exchanged upward flexibility for spot indexation. Wood MacKenzie, Forbes, 14 Oct. 2021 Contracts got shorter, oil indexation fell from 16%, near oil parity, to below 11% in recent years, and buyers’ portfolios took on a higher proportion of spot LNG. Wood MacKenzie, Forbes, 14 Oct. 2021

These examples are programmatically compiled from various online sources to illustrate current usage of the word 'indexation.' Any opinions expressed in the examples do not represent those of Merriam-Webster or its editors. Send us feedback about these examples.

Word History

First Known Use

1960, in the meaning defined above

Time Traveler
The first known use of indexation was in 1960

Dictionary Entries Near indexation

Cite this Entry

“Indexation.” Dictionary, Merriam-Webster, Accessed 28 May. 2024.

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