Inflation Calculator India
Calculate historical inflation using official MOSPI data or project future costs for financial planning.
End Year must be greater than Start Year.
Understanding the “Silent Tax” of Inflation
Inflation is often described as a “silent tax” on your savings. In simple terms, it is the rate at which the price of goods and services in the Indian economy increases over time. When inflation rises, every Rupee you own buys a smaller percentage of a good or service.
How this Calculator Works
This tool utilizes two distinct methodologies to help you understand value erosion:
For detailed CPI data tables, visit our Historical CPI Indices page.
- Retrospective Analysis (Historical): We query our database of official CPI (Consumer Price Index) numbers from 2000 to the present. By comparing the index value of your starting year against the target year, we can mathematically determine exactly how much purchasing power has been lost.
- Prospective Analysis (Future): For financial planning, knowing the past isn’t enough. Our “Future Mode” uses the compound interest formula in reverse. By assuming a fixed inflation rate (e.g., 6%), we project how much money you will need in the future to maintain your current standard of living.
Why Use an India-Specific Calculator?
Global inflation calculators often use US CPI or UK RPI data, which is irrelevant for an Indian resident. The Indian economy has a unique consumption basket (heavy on food and fuel) which dictates our specific inflation numbers.
This tool is calibrated specifically for the Indian Rupee (INR) and aligns with data from the Ministry of Statistics and Programme Implementation (MOSPI). Whether you are planning for a child’s education in 2035 or your own retirement, using India-specific data is non-negotiable for accuracy.
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Frequently Asked Questions
What data does this calculator use for historical inflation?
We use official Consumer Price Index (Combined) data published by the Ministry of Statistics and Programme Implementation (MOSPI), Government of India (base year 2012=100). All values are based on annual/monthly averages from official releases.
Why does the calculator show different results from other online tools?
Many generic calculators use approximate or outdated data. We strictly use the latest official MOSPI CPI series, which is the same index the RBI and government reference for inflation measurement in India.
What is a good inflation rate to use for future projections?
The RBI targets 4% ± 2% (i.e., 2–6%). Historically, India’s CPI inflation has averaged around 6% over the last 20 years. For conservative long-term planning (retirement, education), many experts recommend using 6–7%. You can adjust based on your own view.
How accurate are the future projections?
Future projections are mathematical estimates based on the inflation rate you choose. They are not predictions — actual future inflation depends on many economic factors (fuel prices, monsoons, RBI policy, global events). Use it as a planning tool, not a guarantee.