COST INFLATION INDEX- ALL YOU NEED TO KNOW

COST INFLATION INDEX- ALL YOU NEED TO KNOW

Prices of goods increase over time, resulting in a fall in the purchasing power (quantity of goods that one unit of money can buy) of money. If two units of goods could be bought for Rs 100 today, tomorrow only one unit might be available for Rs 100 due to inflation. Cost Inflation Index (CII) is used to estimate the increase in the prices of goods and assets year-by-year due to inflation.

 

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