Inflation's effect on everyday spending

The rising tide of inflation is reshaping how consumers and businesses approach everyday spending. With prices of essential goods and services climbing steadily, many households are forced to prioritise necessities over discretionary purchases. This has led to a noticeable shift towards value-based purchasing, where consumers seek products that offer quality at affordable prices, compelling businesses to rethink their offerings and pricing strategies.

For companies, this changing dynamic brings both hurdles and opportunities. To remain competitive, businesses must adopt innovative solutions, such as streamlining operations, embracing cost-efficient technologies and offering budget-friendly alternatives without sacrificing quality. These strategies not only help in mitigating the effects of inflation but also build stronger relationships with cost-conscious consumers.

On a broader scale, it is imperative for policymakers to implement measures that address the root causes of inflation and ease the burden on households and businesses. Initiatives like reducing production costs, supporting small businesses, and fostering competition can stabilise markets and ensure long-term economic resilience. A joint approach by consumers, businesses, and governments is key to navigating these uncertain times.

Mahmuda Sultana Mim

Bachelor of Business Administration (BBA)

North South University

[email protected]