The CPI and Indexed Leases: A New Dawn?

  • June 24, 1983
  • • Written by: Mark J. Shrader Paul R. Goebel

Spring/Summer 1983, Vol 8, No 1

Abstract: Escalation clauses in multiyear leases indexed to the Consumer Price Index commonly have been used in past periods of inflation. The recent change in the ‘all-urban’ CPI has raised the question of whether the CPI will continue to be useful in indexed leases. The authors examine this issue by contrasting the old and revised CPI, and they offer an alternative to the all-urban CPI.