How can I figure out the real rate of inflation in india? If I don't believe CPI as real and practical? We get the CPI numbers as inflation rate, but in my views those numbers are not the real one.

I need it to make sure that I keep my personal saving growing in a real sense, not taken down by inflation - i.e. I want to figure out what minimum percentage I should get per year minimum to get it growing and not shrinking.

  • 1
    What do you mean Real Rate of Inflation? Can you define that? Mohits Questions on economics are off-topic, unless they related to personal finance. This would get closed.
    – Dheer
    Commented Apr 12, 2015 at 9:05
  • Nominal Interest Rate = Real Interest Rate + Inflation. There is no "Real" Inflation.
    – base64
    Commented Apr 12, 2015 at 19:39

1 Answer 1


I get what you mean by the word 'real'

My answer is better suited as a comment but I can't comment yet.

In any financial activity, be it a personal savings or business investment, in my opinion, it always good to calculate inflation rate yourself. For example your business may be saving for future construction or renovation thus goods from CPI such as shirts or milk are not really useful. In this case you can estimate what goods you are more likely to be spending your money on in future and calculate an increase in price for these specific goods yourself.

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