Indexing Arrangements and Inflation

Flashcards based on cooperation with indexing arrangements in government and private markets, inflation impacts, and related concepts.

Indexed

A price, wage, or interest rate adjusted automatically for inflation.

Cost-of-Living Adjustments (COLAs)

A contractual provision that wage increases will keep up with inflation.

Adjustable-Rate Mortgage (ARM)

A type of loan where the interest rate varies with market interest rates.

Consumer Price Index (CPI)

A measure that examines the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.

Inflation

The rate at which the general level of prices for goods and services is rising.

Social Security benefits

Payments made to qualified retirees and disabled individuals, which increase each year alongside the Consumer Price Index.

Long-term planning

The practice of preparing for the future, which can be complicated by inflation.

Productivity rates

The measure of the efficiency of production, which can be influenced by inflation.