Price changes and indexation

Typical wording

The supplier may adjust prices once a year in line with the consumer price index, on at least thirty (30) days' written notice.

What it means

The price can go up without you having to accept it each time, as long as the notice arrives in time and the increase follows a stated index.

Common practice

An annual adjustment by the consumer price index with 30-90 days' notice is common. Free price increases with no cap or index are onerous.

What to look for

• Is the increase tied to an index, or set freely?
• Is there an annual cap?
• Can you terminate at no cost if you do not accept the increase?
• How long is the notice period, and how are you notified?

Source