Common use of Adjustment for Inflation Clause in Contracts

Adjustment for Inflation. Some rental payments due under this agreement shall be adjusted for inflation, beginning on the first annual anniversary date of this agreement, and annually thereafter. The initial adjustment shall be made on August 1st, 2001 and shall apply to the monthly payments beginning with the August, 2001 payment. Subsequent adjustments shall be made annually on the anniversary of the initial adjustment. Each adjustment shall be made by multiplying the ratio obtained by dividing the current Consumer Price Index-All Urban Consumers (CPI-U) by the Consumer Price Index-All Urban Consumers (CPI-U) in effect one year earlier times the rental amount in effect one year earlier.