nflation is often called the “silent thief” because it erodes your purchasing power over time. In 2022–2023, India inflation reached record highs, affecting everything from energy bills to grocery costs.
What Is Inflation?
Inflation refers to the general increase in prices over time. A 2% rate is normal, but anything beyond that can significantly affect your finances.
How Inflation Impacts You
- Savings: Cash sitting in your bank account may lose value.
- Pensions: If not inflation-adjusted, your future income could fall short.
- Wages: Your salary may not keep pace with the cost of living.
- Investments: Stocks and real estate often outpace inflation over the long term.
What You Can Do
- Invest wisely: Avoid keeping all your wealth in cash.
- Consider inflation-linked bonds (e.g. Index-Linked Gilts).
- Negotiate salary increases in line with inflation.
- Review subscriptions and utility bills annually.
Understanding inflation helps you make decisions that protect your future self.