Inflation silently erodes purchasing power. ₹1 lakh today will not buy the same things 10 years from now. This works in both directions — future value and real purchasing power.
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At 6% inflation, prices double roughly every 12 years (Rule of 72: 72 ÷ 6 = 12). RBI's target band is 2–6%.
RBI's target inflation band is 2–6%. Actual inflation varies and affects different spending categories differently. See our full disclaimer.