indexation

noun

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

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The winners of capital gains indexation Investors also have a lot more to gain from indexation today. Sasha Rogelberg, Fortune, 19 Mar. 2026 Legislation to enact the indexation of capital gains taxes was introduced in 1978, 1983, 1994, 1997 and 1998. Business Columnist, Los Angeles Times, 19 Mar. 2026 Since the 1970s, most international trade has been conducted using crude-oil-price indexation, that is, the LNG is priced at the same level as crude oil, converting according to the relative energy content of the two products. Michael Lynch, Forbes.com, 25 July 2025 Already next year, the budget will have to spend more on indexations due to high inflation and additional subsidies to businesses. Yaakov Katz, Newsweek, 28 Nov. 2024 Passive capital allocation or indexation won’t unlock value for small but growing companies. Shawn Tully, Fortune Asia, 9 Oct. 2024 That reflects 17% indexation to Brent, 50% higher than the 11% cited in contracts signed a year ago. Wood MacKenzie, Forbes, 16 June 2022

Word History

First Known Use

1960, in the meaning defined above

Time Traveler
The first known use of indexation was in 1960

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Cite this Entry

“Indexation.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/indexation. Accessed 22 Mar. 2026.

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