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General

Inflation

Also known as: Price Rise, Currency Devaluation

The rate at which prices of goods and services increase, reducing purchasing power over time.

Detailed Explanation

Inflation erodes the purchasing power of money over time. In India, retail inflation typically ranges from 4-6% annually. This means ₹100 today will have the purchasing power of approximately ₹95 next year at 5% inflation. Investments must beat inflation to maintain real wealth, making equity investments crucial for long-term goals.