[in-dek-sey-shuh
n] 
| the automatic adjustment of wages, taxes, pension benefits, interest rates, etc., according to changes in the cost of living or another economic indicator, esp. to compensate for inflation. |
| in·dex·a·tion (ĭn'děk-sā'shən) n. 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. |