Can Inflation Affect Your Savings? See the Inflation Rate in India Last 10 Years to Know

A ₹100 note isn’t what it used to be. Find out how inflation quietly reshaped your wallet.

People often wonder whether things are actually getting more expensive, or if it just feels that way. Looking at the inflation rate in India over the last 10 years can offer a clear picture. From grocery bills to petrol prices, everything is connected to inflation.

When inflation goes up, savings lose value faster. When it goes down, loans become easier to manage. That’s why economists, investors, and even everyday families pay attention to the inflation rate regularly.

What Is Inflation And Why Should It Matter To You?

Inflation means the general rise in prices of goods and services over time. So, the same ₹100 may buy less next year than it did this year. When you understand the inflation rate in India over the last 10 years, you get a better idea of how your money has performed over time.

A higher inflation rate reduces purchasing power, especially if salary growth doesn’t keep up. It also affects investments, EMIs, savings, and even pension plans.

How Has Inflation Changed Over the Last 10 Years in India?

The rate tends to rise due to food price shocks, fuel price hikes, supply chain issues or currency fluctuations. When it stays within the RBI’s comfort zone of 2–6%, the economy is considered stable.

Source: RBI and MOSPI (based on CPI)

The table shows that the inflation rate in India during the last 10 years stayed mostly between 3% and 6%, except during pandemic-related disruptions in 2020–2022.

What Does This Mean For Borrowers And Investors?

Inflation is the steady rise in prices in a country. When it drops, banks feel some space to rethink their lending cost. That is the simple idea behind the explanation of inflation-driven EMI changes. And it shapes the effect of falling inflation on borrowers in many ways.

Some borrowers see quicker changes. Others wait. The table below shows the basic difference that most people see in the market.
 

A past Loansjagat artucle had noted inflation touching 1.54 percent in September 2025. That story sparked the early talk on whether loan installments will be reduced further. It set the base for the future outlook for loan EMI reductions. This new CPI print only makes that older point sharper. 

Conclusion

Old cycles tell a familiar story. Banks waited, checked their books, then cut rates bit by bit. Government notes during 2022 and 2023 also told lenders to move with care, not rush. So EMI cuts never came in one clean drop. They came in stages. Sometimes tiny, almost invisible.

That same pattern may return. Or maybe the pace changes this time. Hard to guess. The new figures look strong on paper, especially when people talk about the inflation rate in India in the last 10 years and how it shaped every borrowing cycle. But banks still walk at their own speed. They hold their own way of reading the numbers, their own timing.

Feels slow, yes, but that is how the system usually moves.

 

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About the Author

LoansJagat Team

‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.