How Inflation Affects Your Daily Life

We all remember when our favorite snack cost half of what it does today. That invisible force raising prices quietly over time is called Inflation.

What Exactly Is Inflation?

At its core, inflation measures the rate at which the general cost of goods and services is rising. As a result, the purchasing power of your money is falling. A ₹100 note today buys less than it did five years ago.

The Silent Wealth Killer

Let’s say retail inflation is at 6% per year. If you keep ₹1,00,000 in your bedroom almirah for a year, technically, you still have ₹1,00,000. But its purchasing power has dropped to roughly ₹94,000. Even if you put it in a savings account earning 3%, you are still losing 3% to inflation every single year.

How to Outpace It

The only way to protect your wealth is to invest it in assets that generate returns higher than the inflation rate. In the long term, equities (shares and mutual funds) have consistently been one of the best ways to outpace inflation.

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