Relationship of inflation with socioeconomic parameter on grocery items

Abstract

This study looks at how inflation affected Pakistani families' spending habits and the purchasing power of the society between 2000 and 2025. A long-term equilibrium relationship between these variables is confirmed by the Bounds test. Increases in consumer price inflation, access to clean cooking technology, and final consumption spending have a short-term negative impact on the GDP deflator inflation rate, and these impacts continue over time. Economic shocks can have long-term repercussions, according to diagnostic tests that show serial correlation issues. These findings demonstrate the need for robust government policies to raise household purchasing power, maintain consumption trends, and control inflation. Comprehensive, long-term measures are required to raise living standards, promote economic stability, and mitigate the detrimental social effects of inflation in Pakistan.