Last updated: 2026-10-21
Why inflation matters
At 6% inflation, prices double in about 12 years. Money in a savings account earning 3% loses value every year. That's why long-term goals like education and retirement need investments that beat inflation.
Future cost = Today's cost × (1 + inflation)years
Quick rule of 72
Divide 72 by the inflation rate to see how many years it takes for prices to double: 72 ÷ 6 = 12 years.
Frequently asked questions
What is the inflation rate in India?
Retail (CPI) inflation changes every month. Over the last decade it has averaged roughly 5–6% a year. For long-term planning, 6% is a common assumption.
How do I beat inflation?
Investments like equity mutual funds have historically beaten inflation over long periods. FDs and savings accounts often only just keep up, or fall behind after tax.