Swathy Sunil, Assistant Professor, Department Of Business Administration, DCSMAT Vagamon
Inflation constitutes a pivotal economic variable that profoundly shapes consumer conduct within India. Defined as the sustained escalation in the aggregate price levels of goods and services, this phenomenon erodes the purchasing power of the currency. Its ramifications are palpable in the daily existence of consumers, notably influencing their purchasing patterns, savings strategies, and expenditure allocations. As the costs of essential commodities including food, fuel, apparel, and household necessities, climb, consumers typically become increasingly vigilant regarding pricing and consequently adjust their budgets accordingly.
This study investigates the ramifications of inflation on consumer purchasing dynamics within the Indian context. Amidst escalating price levels, consumers increasingly gravitate toward budget- conscious alternatives, engage in rigorous cost comparisons, curtail expenditures on non-essential goods, and pivot to alternative brands. Households characterized by lower to moderate income brackets bear a disproportionate burden, as a significantly larger portion of their earnings is allocated to indispensable goods & services.
These economic pressures exert a profound influence on brand selection, the aspiration for luxury acquisitions, and broader market trajectories. Consequently, this research delineates the intricate interplay between inflationary forces, eroding purchasing power, and the resultant shifts in consumer decision-making.
