IDEAS home Printed from https://ideas.repec.org/a/sae/inddev/v19y2025i1p118-134.html
   My bibliography  Save this article

Effects of Inflation on Household Consumption Expenditure: An Empirical Insights From The Indian Economy

Author

Listed:
  • Aasima Nazir
  • Showket Ahmad Mir

Abstract

The research conducted a practical analysis to investigate the impact of inflation on the spending patterns of households in India for the period of 1991–2020. The study used the augmented Dickey–Fuller test (a test to check the stationarity of the data), and the selected variables are stationary at first difference. The ordinary least squares method and various diagnostic and stability tests have been used to analyse the data. The study’s empirical results indicate a notable and negative correlation between inflation and household consumption expenditure in India. As a result, the study suggested that the government should strive to maintain consistently low and stable prices in order to mitigate the detrimental impact of inflation on private spending. It is valuable to conduct further research on causality and structural breaks in future studies.

Suggested Citation

  • Aasima Nazir & Showket Ahmad Mir, 2025. "Effects of Inflation on Household Consumption Expenditure: An Empirical Insights From The Indian Economy," Indian Journal of Human Development, , vol. 19(1), pages 118-134, April.
    • Handle: RePEc:sae:inddev:v:19:y:2025:i:1:p:118-134
    DOI: 10.1177/09737030251346761
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.1177/09737030251346761
    Download Restriction: no
    File URL: https://libkey.io/10.1177/09737030251346761?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:sae:inddev:v:19:y:2025:i:1:p:118-134. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: SAGE Publications (email available below). General contact details of provider: .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.