See the real value of money over time
In 10 years, ₹1,00,000 will only have the purchasing power of approximately ₹0.
Protect your future wealth
Estimate the future cost of your goals (like education, marriage) to plan your investments accurately.
Understand how much value your money loses over time due to inflation.
Check if your investments are actually beating inflation or just matching it.
Predict how your monthly household expenses will grow in 5, 10, or 20 years.
Adjust your retirement target corpus by accounting for future inflation rates.
Calculate how much more you need to earn in the future to maintain your current lifestyle.
Inflation is the rate at which the general level of prices for goods and services is rising. As a result, the purchasing power of currency is falling. For instance, if the inflation rate is 6%, a ₹100 item will cost ₹106 next year.
Reduces Value of Money
6-7% in India
Invest > Inflation Rate
Common queries about Inflation
The average retail inflation rate in India typically hovers around 5% to 7%. For long-term financial planning, it is safe to assume an inflation rate of 6%.