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Inflation in India for 5 years: 2021 – 2026

Since 20201 Year5 Years10 YearsAll
Start
End
Latest month of data:June 2026
Cumulative Inflation for 5 Years
+25.9%
Average Inflation Rate
4.7%
Price Multiplier
1.26x
Loss of Buying Power
-20.6%
inflationcompare.com

Report for: July 2021 — June 2026

Moderate (creeping) inflation was recorded with an average annual rate of 4.7%. This is the standard operating mode for most economies, stimulating consumption. However, over time, this rate leads to a logical erosion of capital: the total cost of living increased by 1.26 times, reducing the real value of INR to 79%.

Inflation Rate by Year

Inflation Adjusted Prices

Equivalent Value
What cost 100 INR in 2021, would cost 126 INR today. To maintain the same standard of living, income over 5 years should have grown by 1.26 times.
2021100 INR
+25.9%
2026126 INR

Value Adjusted for Inflation

Loss of Buying Power

Real Value
Since 2021, the purchasing power of 100 INR has decreased to 79 INR. The chart shows how INR lost a total of 20.6% of its value over 5 years.
2021100 INR
-20.6%
202679 INR
-21%
Total Loss

Purchasing Power Over Time

Cumulative Inflation (%)

Historical Inflation Table

YearInflation (%)
20262.79%
20251.17%
20245.21%
20235.73%
20225.71%
20215.68%

Related Countries

China
China
Russia
Russia
USA
USA

Calculation Methodology

Calculations are based on CPI MOSPI. It is a consumer price index that measures the average change in prices for goods and services purchased by the population.

Price Multiplier

Price Multiplier shows how many times prices have increased. In macroeconomics, this baseline metric is known as the Price Index Ratio. It is derived directly from official CPI data and serves as the mathematical foundation for all other calculations on this page.

Formula:
Price Multiplier(K)=CPI2026CPI2021\text{Price Multiplier} (K) = \frac{\text{CPI}_{2026}}{\text{CPI}_{2021}}
Calculation:
107.00085.000=1.2588\frac{107.000}{85.000} = 1.2588
Cumulative Inflation

To calculate the cumulative inflation since 2021, we use the following formula:

Formula:
(K−1)×100=Cumulative(%)(K - 1) \times 100 = \text{Cumulative} (\%)
Calculation:
(1.2588−1)×100=25.9%(1.2588 - 1) \times 100 = 25.9\%
Average Inflation Rate

Shows the average annual price growth rate including compound interest (where each year's inflation is added to already increased prices). To calculate the average annual inflation for 5 years since 2021, we use the following formula:

Formula:
K1n−1=Average Inflation RateK^{\frac{1}{n}} - 1 = \text{Average Inflation Rate}
n — number of years (5)
Calculation:
(1.25881/5−1)×100=4.7%(1.2588^{1/5} - 1) \times 100 = 4.7\%
Loss of Buying Power

To find out what share of its real value savings in INR have lost since 2021, we calculate the percentage drop in purchasing power. Loss of buying power is calculated as an inverse proportion to price growth:

Formula:
(1−1K)×100=Loss of Buying Power(%)\left( 1 - \frac{1}{K} \right) \times 100 = \text{Loss of Buying Power} (\%)
Calculation:
(1−11.2588)×100=20.6%\left( 1 - \frac{1}{1.2588} \right) \times 100 = 20.6\%
Equivalent Value

To calculate the equivalent value in terms of purchasing power in 2026, we multiply the initial value from 2021 by the price growth factor:

Formula:
Original Amount×K=Equivalent\text{Original Amount} \times K = \text{Equivalent}
Calculation:
100×1.2588=126 INR100 \times 1.2588 = 126 \text{ INR}

Citation & Data Usage

You can use the data in your articles. Link to the source:

"Inflation in India (2021–2026)", InflationCompare, . Accessed 18 July 2026. Data source: CPI MOSPI.
Inflation in India for 5 years (2021–2026) | Yearly Chart