Inflation Calculator India 2026

India's CPI retail inflation for 2024 averaged ~5.1%, within RBI's 4% ± 2% target. Food inflation ran at 7–8%, healthcare 8–10%, and education 10–12%. Use 6% as a conservative planning rate for general expenses, and 10% for education goals.

₹1 lakh in 1991 is approximately equivalent to ₹12–14 lakh today (2025), due to India's sustained inflation over 34 years. India's average CPI from 1991–2024 was around 7.5–8% annually. Use the Past Value mode above to calculate exact figures for any year.

Use the Retirement mode above. Formula: Annual expense at retirement ÷ 4% safe withdrawal rate = corpus needed. If you need ₹80,000/month (inflation-adjusted from ₹40,000 today after 20 years at 6%), that's ₹9.6L/year. Corpus = ₹9.6L ÷ 0.04 = ₹2.4 crore. Start SIP early — compounding does the heavy lifting.

Education costs in India rise at 10–12% annually — nearly double the general inflation. If your child's college today costs ₹5 lakh, in 15 years at 10% it will cost ~₹20.8 lakh. Start a dedicated ELSS or equity MF SIP for education as early as possible.

No. An FD at 7% before tax in the 30% bracket yields ~4.9% post-tax. With 6% inflation, real return is -1.1%. FDs preserve capital but destroy purchasing power slowly. For inflation-beating, equity MF (12–15%), Sovereign Gold Bonds (8%), or index funds (11–13%) are better for long-term goals.

Rule of 72: divide 72 by the rate to find years to double. At 6% inflation, prices double in 12 years. At 8%, 9 years. Conversely, money invested at 12% returns doubles in 6 years. The goal: make your investments double faster than prices do.

Use the Goal Planner mode. Enter your goal's current cost, select goal type (education, wedding, home, etc.), set years, and expected return. The calculator shows the future inflation-adjusted cost and exact monthly SIP needed at 12% equity returns. Example: ₹5L education goal in 15 years at 10% inflation needs SIP of ~₹5,200/month at 12% return.

If you get an 8% annual hike but inflation is 6.2%, your real salary growth is only ~1.7% (Fisher formula: (1.08/1.062)-1). If hike equals inflation, your purchasing power is flat. If inflation exceeds your hike, your real salary falls. Use Salary Erosion mode to see exactly how much your ₹50,000 salary is worth in real terms over 10 years.