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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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 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

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.” Merriam-Webster.com Dictionary, Merriam-Webster, https://www.merriam-webster.com/dictionary/indexation. Accessed 22 Dec. 2024.

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