At 6% inflation, ₹1 lakh lifestyle today may need ₹1.79 lakh in 10 years for the same spending power. Ignoring inflation makes retirement and education targets too low.
Formula concept
Future amount needed = Present amount × (1 + inflation)years
Where inflation planning matters
- Retirement monthly expense projection
- Child education 15 years away
- FIRE corpus targets
- Salary hike vs real income growth
India context
CPI averages vary — education and healthcare often inflate faster than general CPI. Use conservative assumption (6–7%) for long goals.
Master Calc Inflation Calculator with Retirement Planning and FIRE Calculator.
Disclaimer: Inflation rates are assumptions for planning.