The thesis examines the effects of inflation on consumer behavior by analyzing how inflation impacts spending, saving, and investment decisions across different demographics and regions. It investigates cultural, social, personal, and psychological factors that influence consumer responses to inflation. The thesis also explores how inflation alters spending priorities, such as the shift towards essential goods and cost-saving measures like bulk buying and choosing cheaper alternatives. It discusses sector-specific impacts, particularly on housing, food, and energy, where inflation disproportionately affects lower-income households, deepening economic inequality. Furthermore, the study covers various pricing strategies businesses use to adapt to inflationary pressures, such as dynamic and demand-based pricing. Also evaluating global aspects of inflation, including trade dynamics, exchange rates, and policy responses like monetary and fiscal adjustments to control inflation and maintain economic stability. Concluding with a discussion on future trends and policy implications, highlighting the importance of adaptive policies to manage inflation’s effects on consumer behavior and maintain economic stability.