Discover how inflation erodes your money's value over time — and how much you need to invest to beat it.
| Year | Value Needed (₹) | Purchasing Power Lost |
|---|
Inflation means your money loses purchasing power over time. ₹1,00,000 today will not buy the same amount of goods in 10 years. India's consumer price inflation (CPI) has historically averaged 5–7% annually, though it has fluctuated significantly — reaching 7%+ in 2022–23.
RBI's inflation target is 4% (with a tolerance band of 2–6%). When inflation exceeds this, RBI raises repo rates — which directly increases home loan, car loan, and personal loan EMIs.
This is why financial experts consistently say: keeping your money in a savings account long-term is actually losing money in real terms. Investments that beat inflation are essential for wealth preservation.