Analysis Of The Article Inflation On Consumer Behavior

INFLATION Article 1 http://www.gallup.com/poll/108892/surging-prices-changing-us-consumer-behavior.aspx http://www.usnews.com/news/articles/2015/08/19/sluggish-consumer-price-index-ticks-up-as-economy-waits-on-inflation Analysis of the article The first article states the effects of inflation in the year 2008 when US was undergoing a recession. During that particular year the prices rose by 5 % as a result of which many consumers changed their spending habits. Many consumers also had a shift in their lifestyle in many different ways to make ends meet. For e.g., a lot of people moved in with their parents to save on the additional cost of rent, reduce their spending on expensive brands, people concentrated more on buying staple food items than luxury food items. Below is a snapshot of the change in consumer prices due to higher inflation. Courtesy: Gallup poll These results are based on telephone interviews with 1,016 national adults, aged 18 and older, conducted July 10-13, 2008. This clearly states that inflation directly impacts consumer buying habits, during high inflation people are more interested in buying staple products necessary for their survival or switch to cost effective alternatives. Buying of expensive products rely solely on sales and cash discounts. Entertainment spending and vacations also reduces during this period. People just hold on to their wallets. Looking at the year of 2015, we see that inflation is still under control however the consumerShow MoreRelatedOutline Of An Project On Inflation Essay1141 Words   |  5 Pages Declaration I Poonam Pillai hereby declare that the term paper report titled study on Inflation in India that I have submitted is original. I was in regular contact with nominated guide and contacting him for discussing the project. 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