| Many parties to contracts want the price agreed on for goods or services at a specific time to be changed or adjusted at a later date. A clause will often be included in the contract to the effect that the price will be adjusted in accordance with changes in a specified price index. Since the price indices are produced by independent statistics offices, they can be considered an objective measure of a price change, which makes them suitable for this purpose. Which index is most appropriate in different cases is up to the contracting parties to decide, depending on the purpose of the adjustment. |