What inflation means for you
Inflation is the rate at which prices rise. At 6% a year, something that costs ₹1,00,000 today will cost about ₹1,79,000 in 10 years — and money kept in cash loses almost half its buying power.
How to beat inflation
- Aim for investments that earn more than inflation after tax — for long-term goals this usually means some exposure to equity through SIPs.
- Use inflation-adjusted figures when planning goals like education and retirement.
- Keep only an emergency fund in low-return savings; invest the rest according to your goals.
India's retail inflation (CPI) varies year to year. Long-term planners often use 5–7% for general expenses and higher rates for education and healthcare.