Balancing Act: Exploring the Relationship between Inflation and Consumer Behaviour

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.