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The Producer Price Index, or PPI, is widely used by the government and businesses to make better informed decisions. One of its uses is contract adjustment, which will be our focus in this video. So imagine that youre a buyer entering into a long-term contract, but the economy is unpredictable and you want to make sure that youre charged a fair price in the future. To ensure this happens, you can write a contract-adjustment clause. These clauses are used for adjusting prices in long-term sales and purchase contracts and typically specify dollar amounts to be paid at some point in the future. Creating a contract-adjustment clause provides a form of protection for both you and your business from the unknowns of the future. With this in mind, you may be wondering how you can use PPI data to create your own contract-adjustment clause. There are at least two parties involved in any contractual agreement: the buyer, who is purchasing a particular product or service, and, of course, the se