Concept in Definition ABC

The concept of readjustment is used to indicate the action through which something is adjusted again. It is normally used at the behest of the economic context to account for the increase or decrease that has been applied to product prices, salaries, taxes, among others.

It is worth noting that the readjustment consists of the second change that is made on a value, since before there has been an adjustment to speak of a readjustment.

Meanwhile, the aforementioned readjustment carried out on the aforementioned issues will be associated with the particular circumstances that a person is experiencing. country, a company, a family, a business, and then they demand the realization of this action. In the case of countries, unexpected political and economic events also play a role.

When the economy of a nation go through a situation of inflation It will be impossible that there is no readjustment in the prices of the products and services of consumption in relation to the inflation index, that is, the readjustment will consider the inflation percentage and prices will increase by that magnitude.

On the other hand, this inflationary state will cause wages to depreciate and then salaried workers demand a readjustment in their assets that balances the loss of their power purchasing.

And taxes will also be affected by a context such as the one indicated since they tend to readjust because of the typical increases proposed by inflation.

Rental contracts, regardless of whether or not there is excessive inflation at the time they are agreed, always usually stipulate readjustments after a time of the contract development.
These readjustments imposed by apartment or house owners have the mission of preventing their rent devalue with the to run of time, especially when a contract of more than one year is signed. The mission of this readjustment is that if, for example, there is inflation, it does not impact so negatively on the initial agreement, that is, a safeguard is sought with this and that the owner does not lose purchasing power of his rent.