Inflation Calculator
See how inflation silently erodes purchasing power — and what today's money will be worth in the future.
India's inflation — what the numbers mean
India's CPI inflation has averaged 5–6% over the past decade. At 6% inflation: ₹1 lakh today → ₹56K in 10 years → ₹31K in 20 years → ₹17K in 30 years in real purchasing power. This is why keeping money in a savings account (3–4% interest) is effectively losing money in real terms every year.
Inflation by category
Not all prices rise equally. Food inflation has historically run at 6–8%, education at 10–12%, healthcare at 10–14%, and housing at 5–7%. If you're planning for retirement healthcare costs or children's education, use a higher inflation rate (10–12%) than the general CPI figure for those specific expense categories.
How to stay ahead of inflation
Any investment must beat inflation to preserve wealth. The hierarchy: savings accounts (3%) lose to inflation; FDs (7%) barely break even after tax; gold (10% CAGR) keeps pace; equity mutual funds (12–14% CAGR) genuinely beat inflation. Use our SIP Calculator to model how equity SIPs outpace inflation over time.