Balancing Act: Exploring the Relationship between Inflation and Consumer Behaviour

  • S Lakshmanamoorthy Associate Professor, Department of Economics, Sourashtra College, Madurai, Tamil Nadu, India https://orcid.org/0009-0001-2480-1297
  • S Athinarayanan Assistant Professor, Department of Economics, Sourashtra College, Madurai, Tamil Nadu, India
Keywords: Inflation, Consumer Behaviour, Spending Patterns, Demographic Factors, Adaptive Strategies, Regression Analysis, ANOVA, Economic Dynamics, Financial Resilience, Market Adaptability

Abstract

This study investigates the intricate relationship between inflation and consumer behaviour in the contemporary economic landscape. Through a comprehensive analysis, we explore the impact of inflation on consumer spending patterns, considering demographic influences and adaptive strategies employed by individuals. The research utilizes regression analysis, ANOVA, and qualitative survey data to unravel the complexities of this relationship. Findings reveal a significant positive correlation between inflation rates and specific consumer spending categories. Demographic factors collectively exhibit a noteworthy influence on how diverse groups respond to inflation, emphasizing the need for targeted strategies. Additionally, the prevalence of adaptive strategies, with a focus on savings adjustments, highlights practical measures consumers adopt to navigate economic challenges. The study contributes valuable insights for businesses, policymakers, and researchers seeking to understand and navigate the dynamics of consumer behaviour in the face of inflationary pressures.

Published
2024-03-01
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How to Cite
Lakshmanamoorthy, S., & Athinarayanan, S. (2024). Balancing Act: Exploring the Relationship between Inflation and Consumer Behaviour. Shanlax International Journal of Economics, 12(2), 8-12. https://doi.org/10.34293/economics.v12i2.7194
Section
Articles