Inflation Erodes Pocket Power

Inflation has increased rapidly over the past decade. In May 2026, retail inflation rose to 3.93% from 3.5% in April, while food inflation reached 4.8%. Wholesale inflation also jumped to 9.68%.

Rising global tensions, especially the US-Iran conflict, have pushed up prices of fuel and food items. For an average Indian earning ₹15,000–20,000 per month, even a small increase in inflation has a big impact on the monthly budget.

Over the last 10 years, average inflation has remained between 5% and 7%. This means items that cost ₹100 ten years ago now cost ₹150–170. The purchasing power of ₹100 today is equivalent to ₹50–70 from a decade ago.

What ₹100 could buy in 2016:
- 2 litres of milk and a pack of bread
- About 1.5 litres of petrol
- A decent breakfast or lunch in metro cities
- One movie ticket in a metro city cinema
- 4–5 kg of flour
- 2–3 kg of regular basmati rice

What ₹100 buys in 2026:
- About 1 litre of petrol
- A simple breakfast
- 1–2 cups of tea/coffee with snacks
- 1.5–2 kg of regular basmati rice
- A few daily use items
- 1 litre of milk and a pack of bread