Calculate future value of money, purchasing power, and inflation rate with our comprehensive inflation calculator. Uses historical CPI data for accurate calculations.
Calculate how much your money will be worth in the future due to inflation.
Interpretation: ₹1,00,000 today will be worth approximately ₹53,486 in 10 years with 6% annual inflation. You would need ₹1,79,085 in 10 years to have the same purchasing power as ₹1,00,000 today.
Calculate how much an amount from the past would be worth today, or how much you'll need in the future.
Calculate the inflation rate between two years based on price changes.
Rule of 72: At 6.1% inflation, prices double every 11.8 years (72 ÷ 6.1 = 11.8).
India's Consumer Price Index (CPI) inflation rate data from 2014 to 2024.
| Year | Inflation Rate | CPI Index | Key Events |
|---|
Consumer Price Index (CPI) measures changes in the price level of a weighted average market basket of consumer goods and services purchased by households. In India, CPI is the primary measure of inflation used by the Reserve Bank of India (RBI) for monetary policy decisions.
Inflation is the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. When inflation occurs, each unit of currency buys fewer goods and services. For example, if the inflation rate is 6%, a ₹100 item today will cost ₹106 next year. This means your money loses value over time if not invested at a rate higher than inflation.
In India, inflation is primarily measured using the Consumer Price Index (CPI). The CPI tracks the change in retail prices of a basket of goods and services consumed by households. The Reserve Bank of India (RBI) monitors CPI inflation to make monetary policy decisions. The formula for calculating inflation rate is: [(CPI current year - CPI previous year) / CPI previous year] × 100.
Over the last decade (2014-2024), India's average annual inflation rate has been approximately 5-6%. However, it has varied significantly year to year - from as low as 1.5% in 2017 to as high as 12.2% in 2013. The Reserve Bank of India targets inflation at 4% with a tolerance band of ±2% (2-6%).
To protect your savings from inflation, you need investments that yield returns higher than the inflation rate. Consider:
Fixed deposits and savings accounts typically offer returns lower than inflation, resulting in negative real returns.
CPI (Consumer Price Index) measures changes in prices at the retail level from the perspective of consumers. WPI (Wholesale Price Index) measures changes in prices at the wholesale level from the perspective of producers. CPI is more relevant for households as it reflects actual consumer expenses, while WPI is more relevant for businesses and policymakers monitoring production costs. Since 2014, RBI has used CPI as its primary inflation measure for monetary policy.
Inflation is a critical economic concept that affects every aspect of personal finance in India. Our advanced inflation calculator helps you understand how rising prices impact your money's purchasing power over time. Whether you're planning for retirement, saving for a goal, or simply trying to understand economics, this tool provides valuable insights.
Our inflation calculator offers four main functions:
Ignoring inflation in financial planning can lead to significant shortfalls in meeting future goals. For example, if you're saving for a child's education that costs ₹10 lakh today, with 6% inflation, you'll need approximately ₹17.9 lakh in 10 years for the same education. Our inflation calculator helps you make accurate projections for:
India has experienced varying inflation rates over the years, influenced by factors like monsoon patterns, global oil prices, government policies, and economic reforms. The Reserve Bank of India (RBI) actively manages inflation through monetary policy tools like repo rates and cash reserve ratios. Understanding historical inflation trends helps investors make informed decisions about asset allocation and risk management.
The real return on any investment is the nominal return minus inflation. For example, if a fixed deposit offers 7% interest and inflation is 6%, your real return is only 1%. This highlights the importance of choosing investments that outpace inflation to grow your wealth in real terms. Equity investments historically offer higher returns that can beat inflation over the long term, though with higher volatility.
Use our inflation calculator regularly to adjust your financial plans and ensure your money maintains its purchasing power over time. Bookmark this page for quick access to accurate inflation calculations for all your financial planning needs.