Inflation is making you poorer. Here's how you can fight back

Consider this: Rs 1 lakh ten years ago is now worth just Rs 59,500. That's a little over 40 per cent decline in value in the last decade, based on CPI numbers. You can blame the weakening of the rupee's purchasing power on inflation. What is inflation? Inflation refers to the steady rise in the prices of goods and services over time, causing the purchasing power of your money to decline. For example, if inflation is 6 per cent, an item costing Rs 100 today would cost Rs 106 next year. While this difference seems small, inflation accumulates over time and can significantly impact your wealth. In short, inflation works as reverse compounding. Just as compounding helps grow wealth when you invest, inflation silently reduc

This article was originally published on January 14, 2025.