Don't invest less only because inflation is low

Financial advisors factor in the long-term average rate to ensure savings not impacted

Consumer Price Index (CPI)-based inflation was down to a record low of 1.5 per cent in June, from 2.2 per cent the previous month. CPI measures changes in the price level of the basket of consumer goods and services purchased by households. The Reserve Bank of India expects retail inflation to be 2-3.5 per cent in the first half of 2017-18 and 3.5-4.5 per cent in the second half of the financial year.

However, your financial planner continues to assume inflation at 7-8 per cent while making your financial plan and fixes a certain amount for you to save each