YEAR 2019: Say you get 1 kg mangoes for ₹ 100
YEAR 2020: The same 1 kg now costs ₹ 110
INFLATION in 1 Year
Inflation = ₹ 110 – ₹ 100 = ₹ 10 Or
(10/100)*100 = 10%
So, inflation is the rate of increase in prices of goods and services over a period of time. This increases the cost of living.
From the above, you can understand how important it is to invest in the right financial products that give returns at least higher than inflation.
Disclaimer : This message is presented as a reading and teaching material with a sincere purpose of making the reader financially literate. It is not intended to influence the reader in making a decision in relation to any particular financial products or services.
Printed by Reserve Bank of India, Financial Inclusion & Development Department.
