Inflation and Household Welfare: A Micro Level Analysis of Consumption Behaviour and Coping Mechanisms

This research explores how rising prices, known as inflation, affect the way families spend their money. By studying 113 households in Coimbatore, district. The study found that increasing costs put heavy financial pressure on families, particularly those with middle to lower incomes or only one person earning a salary. To deal with these challenges, many people have started checking their budgets more often, yet their daily shopping is still mostly driven by what they need immediately rather than a long-term plan. Most families are now being much more careful, often choosing to delay or completely cancel plans to buy big items so they can afford essentials like groceries and fuel. The study shows that while almost everyone feels the pinch, a person’s age, education, and monthly income are the main factors that determine how much they struggle. To help families stay stable, the research suggests that the government should control the prices of basic goods and employers should raise wages to match the cost of living.