What is Inflation? — Meaning, Definition & Example
Definition
Inflation is the rate at which the general level of prices for goods and services rises over time, eroding purchasing power. In India, Consumer Price Index (CPI) measures retail inflation, while Wholesale Price Index (WPI) measures wholesale inflation. RBI targets 4% CPI inflation (±2%).
If inflation is 6% and your FD returns 7%, your real return is only 1%. That's why equity investments (12-15% returns) are recommended to beat inflation.
🇮🇳 Inflation in Hindi / हिंदी में
मुद्रास्फीति (इन्फ्लेशन) — मुद्रास्फीति वह दर है जिस पर समय के साथ वस्तुओं और सेवाओं की कीमतों का सामान्य स्तर बढ़ता है, जो क्रय शक्ति को कम करता है। RBI 4% CPI मुद्रास्फीति लक्ष्य रखता है।
Inflation (Mehangai) (Hinglish) — Inflation wo rate hai jis pe goods aur services ki prices time ke saath badhti hain. India mein CPI se retail inflation measure hoti hai. RBI ka target 4% CPI inflation hai.