Common use of Inflation Index Clause in Contracts

Inflation Index. The Base Rent shall be further increased annually on each March 15 commencing on March 15, 2001, by an amount determined as follows: (a) As promptly as practical after January of every year beginning January 2001, Landlord shall compute the increase, if any, in the cost of living for the preceding calendar year, based upon the "All Items and Major Group Figures for Urban Wage Earners and Clerical Workers, Denver, Colorado" all items, as published by the Bureau of Labor Statistics United States Department of Labor, based on all items for the period (1982-84 = 100). This Consumer Price Index shall hereinafter be referred to as the "Index Figure." (b) The Index Figure indicated in the column for All Cities entitled "all items," for the month of January shall be the "Base Index Figure," and the corresponding Index Figure for the month of January for every year thereafter shall be the "Current Index Figure." (c) The Current Index Figure shall be divided by the Base Index Figure and the resulting product, if greater than one, shall be multiplied times the previous year's Base Rent to obtain the new increased Base Rent. If the resulting product is equal to one or less than one, the new year's Base Rent shall be the previous year's Base Rent. (d) Landlord shall, within a reasonable time after obtaining appropriate data necessary for computing the increase, give Tenant notice of the increase so determined, which notification shall include computation of the amount due to Landlord by Tenant. (e) If publication of the Consumer Price Index for All Urban Consumers shall be discontinued, the parties shall accept a comparable index published by a reliable government agency which measures the purchasing power of the consumer dollar.