Consumer Price Index rent adjustments are simple to calculate, right? Divide the current index figure by the base index figure to find the percentage increase in CPI, then multiply that percentage by the rent to arrive at the adjusted rent. What could be difficult about this?
You probably know that there is an index - The National CPI (All Items) that is published monthly. It is a broad-based index encompassing the cost of living for approximately 87% of the United States metropolitan population. You are probably aware of the narrower CPI-W (All Items) index that encompasses the cost of living for approximately 32% of the metropolitan population. Did you also know there are CPI-U and CPI-W indices for four regions and 27 major metropolitan areas, some of which are only published semiannually or bimonthly? On top of these confusing choices, add seasonally adjusted indices, old series and new series indices and market indices (food, medical costs, housing and transportation). Not quite so simple now, but the lease language should specify the applicable CPI index.