IMPACT OF INFLATION ON BUYING POWER OF CONSUMER

INTRODUCTON:
In different countries the impact of inflation is different but in most countries its same. Basically due to inflation the buying power of consumer reduces and also the life standard of the people also decreases. Due to inflation they cant enjoy or spend a happy life. In Argentinean middle class consumer in the recession of 2001-2002 not only to the absolute drops in consumption but also emphasize the total elimination of some of the items. The reductions occur gradually as the crisis deepens. At first time their reaction was not too strong as compared to the 2nd. Because they thought that it will be settle down nut it didnt. Their cultural goods are highly affected and higher income households reduce and eliminate their expenditure to a lesser degree than the remaining middle-class families. In AMERICA Consumer behavior is seen to reflect two kinds of orientations - a strategic and a tactical one - and the analysis supports the effect of changing economic environment only on tactical orientations, as hypothesized. Evidence from a survey carried out in the USA and Germany into differences between national reactions to economic changes. This survey reveals that consumers are generally not well informed about price indices. In CHINA people are more concerns about their lifestyle groups and they do shopping according to their values. They pay more price for imported fresh fruits also consumers' ethnocentrism tendencies play an important role in shaping their purchase attitudes towards domestic fresh fruit.

IMPACT OF INFLATION IN PAKISTAN:

In Pakistan people are pessimistic about the inflation and the futures of their buying power and they think it will more bad. About 73% people think this, Inflation is a huge problem for all developed and developing countries no one is safe from its damages. Recently the research team at IFT under the supervision of its CEO Mr. Mohsin Muslim conducted a survey on the Affects of Inflation on Consumers Behavior in Pakistan which determined that significant numbers of peoples are affected by inflation; overall 91% people are affected. About 79% people are concern about petrol prices. We come up with the statistics that93% of the respondents claim that they are not left with spare money to save, while only 7% of the respondents claim to save part of their income. If we refer to the city wise findings we will figure out that among our respondents maximum savers are in Lahore, i.e. 11% of the people living in Lahore are savers compared to 89% non-savers.

A significant number 80 %, survey of respondents are facing expenditure increase in education, food, electricity: followed by transportation 79%, home appliances 54 %, health care 72%, and communication 55%.

LIFESTYLE PATTERN:
In order to find out that Which of their daily activities, those respondents had cut down due to inflation? the responses shows that almost 60% of respondents had decreased the activity of dining outside home, and 54% had decreased going out for coffee/lunch, watching films, music, plays etc. Due to Inflation Consumers had also reduced their daily activities.

VARIABLES: Dependent:
Buying power

Independent:
Inflation

OBJECTIVE: I want to help out the people of Pakistan with the help of my research. I want their buying power should increase and they should enjoy every facility. The basic needs of general public should fulfill.