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The automatic adjustment of an economic variable, such as wages, taxes, or pension benefits, to a cost-of-living index, so that the variable rises or falls in accordance with the rate of inflation.
(Commerce) the act of making wages, interest rates, etc, index-linked
in•dex•a•tion(ˌɪn dɛkˈseɪ ʃən)
the adjustment of wages, interest rates, etc., according to changes in the cost of living.
The adjustment of wages, interest rates and other forms of income to compensate with changes of prices.
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|Noun||1.||indexation - a system of economic regulation: wages and interest are tied to the cost-of-living index in order to reduce the effects of inflation|