The Universal Scholar Journal

Abstract

The present study aimed to examine the impact of inflation on consumer spending behavior. The study was based on secondary data collected from economic reports, research journals, and government publications. Key variables included inflation rate, consumer expenditure, purchasing power, and savings patterns. The data were analyzed using descriptive and comparative methods. The findings revealed that rising inflation significantly affects consumer spending patterns by reducing purchasing power and shifting consumption toward essential goods. The study also observed changes in saving and investment behavior during inflationary periods. It was concluded that inflation plays a critical role in shaping consumer decisions and overall economic activity.

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Impact of Inflation on Consumer Spending Behavior