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This study aims to examine the impact of inflation on household consumption in India from 1990 to 2021. The data was obtained from various sources such as Worlddata.info, Macrotrends and various other sources.The study discovers that there is a negative relationship between inflation and household consumption in India. An increase in inflation rate leads to a decrease in the household consumption. The results are consistent with the traditional theory of consumption which states that as the price level increases, the real income of households decreases, leading to a decrease in the level of consumption. The study also revealed that the impact of inflation on household consumption is more severe for low-income households compared to high-income households.The findings of the study have important implications for policymakers in India. The study suggests that controlling inflation should be a priority in order to promote household consumption and overall economic growth. The study recommends that the government should take measures to control inflation, such as by using monetary policy tools to control the money supply, and by implementing structural reforms to increase productivity. Additionally, the study suggests that the government should take steps to protect low-income households from the negative effects of inflation, such as by implementing targeted cash transfer programs or by increasing subsidies for essential goods.Overall, the study provides a comprehensive analysis of the impact of inflation on household consumption in India from 1990 to 2021. The results of the study can be used to inform policy decisions aimed at promoting household consumption and overall economic growth in India. The study is valuable for researchers, policymakers, and students interested in understanding the impact of inflation on household consumption in India.It should be noted that this research is based on a specific set of assumptions and data, and that the results may differ if different methods or data were used. The study also doesn't Consider other factors that can affect household consumption such as change in tax rate, income, interest rate, unemployment and so on |
