Inflation: the silent wealth-eroder

Inflation is the rise in the general price level over time — ₹100 buys less next year. India tracks it mainly via CPI (Consumer Price Index), which the RBI targets at 4% (±2%).

• Why it matters: if your savings grow 6% but inflation is 6%, you've gained nothing in real terms.
• The goal of investing is to earn returns comfortably above inflation — which is why equity matters over the long run.

This is why Dhanik's calculators let you see inflation-adjusted ("real") returns.

→ See live India inflation on the Macro Economy page.