What is Inflation?
Inflation is the rate at which the general level of prices for goods and services rises, causing purchasing power to fall. Simply put, it means a rupee today is worth more than a rupee tomorrow.
Intelligence Insight: To grow your real wealth, your investments must generate a post-tax return that is higher than the inflation rate. This is why keeping money in a savings account (which yields 3-4%) actually loses you money when inflation is 6%!