price escalation

Language: en

📖 Definitions

  1. A situation where prices increase significantly and rapidly over a short period, often due to inflation, supply chain disruptions, or shifts in market power.; The provision in a contract that allows for adjustments to the price of goods or services based on changes in specific cost indices or economic factors.; A cumulative increase in costs associated with a project or product line over time, leading to higher final prices than originally estimated.

💬 Examples

  1. This price escalation signifies a notable shift in bargaining power within the cloud computing industry.

  2. The construction company included a price escalation clause to protect against rising material costs.

  3. Unforeseen delays led to significant price escalation, causing the project budget to exceed initial projections.