Common use of Adjustment for Inflation Clause in Contracts

Adjustment for Inflation. The base annual funding amount set forth in Section 4.A. of this Agreement [ * ] shall be prospectively adjusted annually commencing [ * ] to provide for future inflation by multiplying the base annual funding amount by the percentage increase in the cost of living index published by the United States Department of Labor Bureau of Labor Statistics (BLS) Annual Average Producer Price Index (Finished Goods) for the New York Metropolitan Area [Base Index, 1982 = 100] for the preceding calendar year of the Research Agreement for which the adjusted payment is being made. If at any time the Bureau of Labor Statistics (BLS) of the United States Department of Labor should cease to publish the Producer Price Index, another annual average index generally recognized as an authoritative indicator of changes in the United States of equivalent costs (preferably an index published by the United States Government) shall be used.