Inflation Calculator
Calculate how inflation affects the purchasing power of your money over time. See what your money from the past would be worth today.
Calculate Inflation Impact
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Inflation Impact
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Historical Inflation Trends in India
Average Inflation Rates by Decade
Recent Yearly Inflation
Why Understand Inflation?
Financial Planning
Plan for future expenses by understanding how prices increase over time.
Investment Goals
Set realistic investment returns that outpace inflation to grow real wealth.
Purchasing Power
Understand how inflation erodes your money's ability to buy goods and services.
Salary Negotiation
Ensure your salary increases outpace inflation to maintain living standards.
Inflation FAQs
What is inflation?
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation to avoid deflation and keep the economy running smoothly.
How is inflation calculated in India?
In India, inflation is primarily measured by the Consumer Price Index (CPI) which tracks changes in prices of a basket of consumer goods and services. The Wholesale Price Index (WPI) is another measure used for wholesale price changes.
What causes inflation?
Inflation can be caused by several factors including increased production costs (cost-push inflation), increased demand for goods and services (demand-pull inflation), expansion of money supply, and external factors like rising import prices.
What is the ideal inflation rate?
Most central banks, including RBI in India, target an inflation rate of 2-6%. Moderate inflation is considered healthy for economic growth, while high inflation erodes purchasing power and deflation can lead to economic stagnation.
How can I protect my money from inflation?
To protect against inflation, consider investments that typically outpace inflation such as equities, real estate, inflation-indexed bonds, and diversified investment portfolios. Avoid keeping large amounts in low-interest savings accounts.