The Court of Cassation has ruled that such clauses must be reciprocal and that otherwise they are void. [8] The indexation clause only protects against price variations.

Cross-checking our analysis, we believe the Michelin price impact of +2.3% in Q1 was divided by 60% due to non-indexed (resulting from the price increase in Q4) and 40% due to indexation clauses.

All of these payments are subject to indexation. So, as the value of indices climbs, so do these CIL and contribution costs, with no additional benefit to the developer.

Crafting a CPI clause comes with a number of decisions. There are several different CPI indices based on factors such as location, type of consumer, included goods and services, and base index period.

These so-called “inflation-plus” clauses peg contracts to the Consumer Price Index rate of inflation plus an additional amount – in my case, 3.7% of my current monthly broadband rate.