See how future inflation impacts your money's purchasing power over time.
| Year | Required Equivalent Cost | Real Purchasing Power Value |
|---|
Inflation is the rate at which general price levels of goods and services rise, decreasing purchasing power per unit of currency.
Purchasing power represents the amount of goods or services one unit of money can buy.
Investing in growth assets like equity mutual funds or real estate helps beat inflation rates over long horizons.
CPI measures weighted average price changes of a basket of consumer goods and services.
Moderate inflation (2-3%) is generally healthy for economic growth as it encourages spending and investment.
Inflation benefits borrowers as future repayments are made with money that is worth relatively less.