Inflation Calculator
Calculate the impact of inflation on your money. See how purchasing power changes over time with our free inflation calculator.
How to Use
Enter current amount â Set inflation rate â Choose period â View future value
FAQ
What is inflation?
Inflation is the steady increase in the general level of prices for goods and services in an economy over time. As inflation rises, every rupee you own buys a smaller percentage of a good or service.
What are the different types of inflation?
The main types include Demand-Pull inflation (demand outpaces supply), Cost-Push inflation (production costs increase), and Built-In inflation (wage-price spiral). All result in the same effect of reduced purchasing power.
How does inflation erode purchasing power?
If the inflation rate is 6%, an item that costs âš100 today will cost âš106 next year. If your savings don't grow by at least 6%, you won't be able to afford the same item, meaning your money has lost purchasing power.
What is the Consumer Price Index (CPI)?
The CPI is a standard measure used by governments to calculate inflation. It examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food, and medical care.
Inflation vs cost of living - what's the difference?
While related, inflation tracks the overall increase in prices across the economy. Cost of living is personal and geographical; it's how much it costs you to maintain a certain standard of living in a specific city or region.
How can I beat inflation with investments?
To beat inflation, your post-tax return on investments must be higher than the inflation rate. Investing in asset classes with historically high real returns, such as equities and equity mutual funds, is a proven strategy for the long term.
What are good inflation hedge investments?
Assets that tend to rise in value during inflationary periods act as a hedge. Common examples include real estate, gold, commodities, inflation-indexed bonds, and diversified stock portfolios.
What are the historical inflation rates in India?
Historically, retail inflation in India has hovered between 4% to 8% over the last few decades. When planning for long-term goals like retirement, it's generally safe to assume an average inflation rate of around 6%.