Will You be Able To Afford A Cup Of Coffee In 20 Years?

By BankBazaar | March 30, 2016

Will I be able to afford cup of coffee in 20 years?

Design Credits: Vishnu Madhav

We all need that cup of life in the morning to bring us back from the land of the dead! We’re not caffeine addicts without reason, we absolutely need cup after cup to get us through work and life in general. But how wallet-friendly is our morning coffee run? Let’s find out. And while we are at it, let’s just imagine we have a time machine at our disposal!

Hop on! The year is 1996 and you’re paying just Rs. 7 for a cup of coffee in your favourite café! Seems unbelievable now, doesn’t it!

Swing to 2014 and the same cuppa is Rs. 80. That’s a hike of 14% every year on a single cup of coffee. Thanks, inflation! With inflation in India being around 8 to 9%, on an average, a cup of coffee is all set to become dearer as the years pass.

We are now spoilt for choice when it comes to the many varieties of coffee available. Not to mention global coffee brands setting up shop in India. Here’s looking at you Starbucks, Costa and the others!

While their entry in the Indian market solidifies India’s identity as a strong global economy, it also means that we will be paying that much more for a good ol’ cup of coffee. With Starbucks increasing their prices globally, others are likely to follow suit. And this brings us back to our original question: will you be able to afford your morning cuppa in the years to follow? The answer would likely be that you will cling on to that cup of coffee for as long as you can, but the habit is going to cost you a lot of good money.

But, perhaps there’s a way out. If you factor inflation into your investments, you just might be able to afford that cup of coffee even in 20 years! Here are some investments that will protect you from inflation.

So, don’t lose hope. You don’t necessarily have to put this oh-so-satisfying addiction to bed. But, you absolutely  must make your investments wisely!

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