Calculate future value of money after inflation in India. See how inflation erodes your purchasing power over time.
📖 Read our detailed guide: Inflation Calculator India — everything you need to know
Read Guide →Inflation is the rate at which prices rise over time. India's average CPI inflation has been 5-7% annually over the past decade. RBI targets 4% inflation. At 6% inflation, ₹1 lakh today becomes equivalent to ₹1.79 lakh in 10 years.
If your savings earn less than inflation, you are losing purchasing power. A bank FD at 7% with 6% inflation gives only 1% real return. PPF at 7.1% with 6% inflation gives ~1.1% real return. Equity mutual funds historically return 12-15% CAGR, far above inflation.
CPI inflation in India for early 2026 is approximately 4.5-5.5%. Food inflation remains elevated. RBI's target is 4% with a 2% tolerance band. Urban inflation is typically lower than rural inflation.
Invest in equity mutual funds (12-15% historical CAGR), real estate (8-10%), gold (8-10%), and keep minimal cash. Even PPF at 7.1% barely beats 6% inflation. Avoid keeping large amounts in savings accounts at 3-4%.
Nominal return is the stated return (e.g., 7% FD). Real return = Nominal - Inflation. At 7% FD with 6% inflation, real return is only 1%. Always calculate real returns when comparing investments against inflation.