GLOSSARY · VISA-HOLDER FINANCE
Real drift of a foreign budget
How a budget priced in another currency changes in today's dollars for someone whose savings are in dollars: (1 + local inflation) ÷ ((1 + the currency's yearly fall) × (1 + US inflation)) − 1. Local inflation pushes it up and a falling currency pushes it down. Over 2005–2025 the rupee fell about 3.5% a year while Indian consumer prices rose about 6.5% and US prices about 2.5% (to 2024), so in dollars Indian prices roughly kept pace with US prices.
Also called: India inflation vs rupee depreciation, cost of living in India in dollars over time
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CHAPTER · TAXES ON BOTH SIDES · STRATEGIESThe Rupee and Currency RiskRELATED TERMS
SOURCES
- India / U.S. Foreign Exchange Rate (AEXINUS). Board of Governors of the Federal Reserve System, H.10, via FRED.
- Inflation, consumer prices (annual %), India (FP.CPI.TOTL.ZG). World Bank Open Data.
- Inflation, consumer prices (annual %), United States (FP.CPI.TOTL.ZG). World Bank Open Data.