Inflation Trends and Their Impact on the Middle Class


Authors : Harmanjot Singh Tajpuri

Volume/Issue : Volume 10 - 2025, Issue 8 - August


Google Scholar : https://tinyurl.com/2ty4wbw3

Scribd : https://tinyurl.com/59jz3fth

DOI : https://doi.org/10.38124/ijisrt/25aug1158

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Abstract : Over the past few decades, inflation has become one of the biggest economic problems, affecting households' financial security all around the world. The middle class, as it frequently experiences both the combined pressure of slow wage growth and growing expenses, is one of the most affected groups. This paper analyses the ongoing inflation trends and how they particularly affect the purchasing power of the middle class. It draws particular attention to how families from the middle class are most negatively impacted by price increases for basic needs like food, fuel, and housing, by which their capacity to save and invest is restricted. The study aims to give readers an in-depth understanding of how inflation weakens middle-class economic stability through studying both macroeconomic data and regular household experiences.

References :

  1. Pulapare Balakrishnan, “Pricing and Inflation in INDIA”, Oxford University Press, 1991
  2. Choi, S, B D Smith and J H Boyd (1996): 'Inflation, Financial Markets and Capital Formation', Federal Reserve Bank of St Louis Review, Vol 78(3).
  3. Fischer, Stanley (1993). “The Role of Macroeconomic Factors in Growth," Journal of Monetary Economics, 32, 485-512.
  4. The Hindu (2024). India’s middle class tightens its belt, squeezed by food inflation.
  5. Singh, P., (2010). ''Searching Threshold Inflation for India'', Economics Bulletin, 30, 3209-3220.

Over the past few decades, inflation has become one of the biggest economic problems, affecting households' financial security all around the world. The middle class, as it frequently experiences both the combined pressure of slow wage growth and growing expenses, is one of the most affected groups. This paper analyses the ongoing inflation trends and how they particularly affect the purchasing power of the middle class. It draws particular attention to how families from the middle class are most negatively impacted by price increases for basic needs like food, fuel, and housing, by which their capacity to save and invest is restricted. The study aims to give readers an in-depth understanding of how inflation weakens middle-class economic stability through studying both macroeconomic data and regular household experiences.

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Paper Submission Last Date
30 - November - 2025

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