Inflation Impact Calculator

Purchasing power is the value of money measured by the quantity and quality of products and services you can buy. As inflation increases, your money buys less, reducing purchasing power. ₹100 today may only buy ₹50 worth of goods in 12 years at 6% inflation.

Inflation erodes the real value of money over time. If you keep ₹10 lakhs in a savings account earning 4% while inflation is 6%, you're losing 2% purchasing power annually. After 10 years, your ₹10L will have the purchasing power of only ₹8.2L in today's terms.

Historical inflation in India averages 5-7% annually. However, healthcare and education inflation can be 10-12%. For long-term planning, use 6-7% as a conservative estimate. Always invest in assets that beat inflation to preserve purchasing power.