Finance Guide
Inflation Calculator Guide — How Inflation Erodes Wealth India
📈 Calculate Inflation Impact
See how inflation erodes your money's purchasing power.
Open Inflation Calculator →India's Inflation History
| Period | Average CPI Inflation |
|---|---|
| 2015-2019 | ~4% |
| 2020-2022 | 5-6% (COVID impact) |
| 2023-2025 | 4.5-5.5% |
| RBI Target | 4% (±2% band) |
Real Impact of 6% Inflation on Rs.1 Lakh
- After 5 years: Real value = Rs.74,726 (lost Rs.25,274)
- After 10 years: Real value = Rs.55,839 (lost 44%)
- After 20 years: Real value = Rs.31,180 (lost 69%)
📌 Key insight: Keeping money in savings account at 3.5% while inflation is 5.5% means you are losing 2% purchasing power every year. You must invest to beat inflation.
Investments That Beat Inflation (India)
| Investment | Return | Inflation Beating? |
|---|---|---|
| Savings Account | 3-4% | ❌ No |
| FD | 6.5-7.5% | Barely |
| PPF | 7.1% (tax-free) | ✅ Yes (on after-tax basis) |
| Equity Mutual Fund | 12-14% CAGR | ✅ Strong yes |
| Real Estate | 8-12% | ✅ Yes |
| Gold | 10-11% CAGR | ✅ Yes (historical) |
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