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Indexation is a method used to adjust the price of multi-year public transport operating contracts to account for general input cost inflation and deflation (fluctuation) effects in the broader economy. This helps enable efficient pricing and sustainability for service providers and public transport authorities (PTAs).  
 
Public transport operating contracts co-funded from the National Land Transport Fund (NLTF) that have a term exceeding 12 months must have their contract payments periodically adjusted to account for general input cost fluctuations using an indexation mechanism approved by NZTA.