The Inflation calculator helps you to plan your future finances with inflation so you don’t get any financial shocks later.
Inflation is a term, used in finance and economics, to describe a sustained rise in the price of all the goods and services that an economy has to offer. Typically, it is measurable with the use of the CPI, or consumer price index. This is an quantifiable measure of the goods and services that people commonly buy. As the prices of such goods and services rise, so will the consumer price index.
The rate of inflation is typically measured in terms of the yearly percentage change in the CPI or the consumer price index. The Inflation Calculator can help with an estimation of the additional capital that would be required to buy the same goods and services at some point in the future, considering a rise in inflation. Therefore, a inflation calculator helps you to know about how (and by how much) the current prices of services and goods will change at future dates. With a inflation calculator for inflation, you can also gauge how much the current rate of inflation is.
The key benefits of an inflation calculator are
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An online tool that is used to determine how the purchase power of a specific amount of capital changes over the course of time, is called an Inflation Calculator. The rate at which goods and services rise is called the inflation rate. It acts as an accurate device to know about inflation in any economy.
Inflation is generally indicative of an increase in the price of products and services, and a consequent decrease in the purchasing power of individuals in any economy. It is important to calculate inflation as this helps you to plan and organise your financial goals better. The calculation of inflation prepares you to face the future in a sound financial way. You can plan your investments, which may yield future returns, by accounting for inflation, so that you don’t fall short of capital in the future.
Inflation is a term that represents the state of the economy in which the price of products and services rise, and the power to purchase those products and services falls. With regard to deflation, there tends to be a downward trend of the price level of products and services. Therefore, deflation increases the power to buy products and services.
The current rate of inflation, retail inflation, according to the CPI, is 6.77% (October 2022 data based on Forbes Advisor).
The Reserve Bank of India (RBI) calculates inflation according to the CPI or consumer price index, as well as the WPI, the wholesale price index.
In periods of inflation, an economy faces an increase in prices of products and services. What this means is that you have to pay more to buy the same products and services. Your cost of living, therefore, increases. In terms of savings, you will have to save more for the future, as prices of things you have to purchase rise.
When you make investments to meet your financial requirements for future goals, you have to account for a rise in the cost of services and goods you will need in the future. Today’s prices will not apply as inflation will influence your expenses for future purchases.