The Impact of Inflation on Consumer Purchasing Power in Emerging Markets

Abstract

This study investigates the effects of inflation on consumer purchasing power in emerging market economies. Focusing on the mechanisms through which inflation influences household consumption, income distribution, and economic stability, this article uses empirical data and economic theory to assess the implications for policy-making in countries experiencing moderate to high inflation. Key findings suggest that inflation disproportionately affects low-income households and undermines long-term economic growth unless effectively managed through targeted fiscal and monetary policies.