Money Decay.

Inflation is the gradual increase in the prices of goods and services across an economy, which decreases purchasing power.

It is usually measured by the Consumer Price Index (CPI) or Wholesale Price Index (WPI) comparing price changes over time.

In developing economies like India, a 4% to 6% inflation rate is considered manageable by the RBI.

Purchasing power is the amount of goods or services that one unit of currency can buy at a given time.

Yes. If your savings account interest is lower than the inflation rate, the 'real value' of your money is decreasing.

Common causes include increased demand, rising production costs (cost-push), and increased money supply.

Hyperinflation is a very high and typically accelerating inflation rate that quickly erodes the real value of the local currency.

To beat inflation, you must invest in assets like stocks, real estate, or gold that historically offer returns higher than the inflation rate.

Real Return = Nominal Return - Inflation Rate. It tells you how much your wealth actually grew.

Inflation can benefit borrowers because they repay their debts with money that is worth less than when they borrowed it.

The Consumer Price Index measures the average change over time in the prices paid by urban consumers for a market basket of goods.

This happens when your spending increases as your income grows, preventing you from building true wealth.

Moderate inflation is often good for stocks as companies can raise prices, but high inflation leads to higher interest rates, which can hurt stocks.

Assets like gold, commodities, and certain types of real estate are traditional hedges that tend to hold value during inflationary periods.

Deflation is the opposite of inflation, where the general level of prices for goods and services falls.

For long-term planning, reviewing annual inflation trends once or twice a year is sufficient for adjusting your portfolio.

Divide 72 by the inflation rate to see how many years it will take for the price of goods to double. (e.g., 72 / 6% = 12 years).

Yes. HQCalc by Shivam Sagar uses the standard compound inflation formula used by financial institutions globally.

Yes, simply enter the historical amount and the average historical rate to see what that money is worth today.

Absolutely. HQCalc provides professional-grade financial tools free of charge.