What is the average inflation rate in India?

Historically, the average consumer price inflation (CPI) in India has been around 6% per year over the last few decades. However, it can fluctuate based on global oil prices and domestic food production.

How does inflation affect my retirement savings?

Inflation reduces the purchasing power of your savings. If inflation is 6%, â‚¹1 Crore today will only buy you goods worth â‚¹31 Lakhs in 20 years. This is why investing in assets that beat inflation (like equity) is crucial.

What is the difference between WPI and CPI inflation?

WPI (Wholesale Price Index) measures price changes at the factory/wholesale level. CPI (Consumer Price Index) measures price changes at the retail level, which directly affects common citizens' monthly budgets.

Inflation Calculator

See how inflation silently erodes purchasing power â€” and what today's money will be worth in the future.

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Purchasing Power Calculator â€” Why it matters?

Inflation is the 'silent killer' of wealth. It represents the rise in the prices of goods and services over time, which effectively reduces your purchasing power. A monthly expense of â‚¹50,000 today might require â‚¹1.6 Lakhs in 20 years just to maintain the same lifestyle, assuming a 6% annual inflation rate. Our inflation calculator India helps you visualize this impact clearly.

Historical Inflation in India (CPI)

The Reserve Bank of India (RBI) aims to keep retail inflation (CPI) within a target band of 2% to 6%. Over the long term, investors in India should account for at least 6% average inflation when planning for major life goals like retirement or children's education. Neglecting inflation in your financial plan can lead to a significant shortfall in your future corpus.

How to Calculate Inflation Impact?

The formula for future cost is: FV = PV x (1 + r/100)^n.

PV: Present Value (Current Cost)
r: Annual Inflation Rate
n: Number of Years

Beating Inflation with Equity Investments

Traditional safe-haven assets like savings accounts or some FDs often struggle to provide 'Real Returns' (returns minus inflation). To truly grow your wealth, you must invest in assets like Mutual Funds or Stocks that have historically outperformed inflation over 5-10 year horizons. Use our SIP Calculator to see how to build an inflation-beating portfolio.