Abstract:
This research project explores diverse impact ofinflation on the living standards of
Pakistan. With Pakistan facing high inflation and
unemployment, this study investigates the challenges and impact ofinflation into an
individual’s standard ofliving. As price hikes, the cost-of-living increases, thereby
diminishing the purchasing power ofPakistani citizens and adversely impacting their
standard ofliving. Through a survey research approach, questionnaires
distributed among the citizens ofKarachi through which, various options were
studied. The study analyzes the impact ofinflation and unemployment on standard of
living including the mediating factors which were business conditions and
psychological effects. Furthermore, the research identifies the challenges faces by
Pakistani families in their financial situation due to the inflationary trend. Findings
suggest that the relationship between inflation and standard ofliving is partially
explained by both business conditions and psychological effects. Whereas the
business conditions and psychological effects do not mediate the relationship between
Unemployment and Standard ofLiving, as the indirect influence was not statistically
significant. Thus, that there is an inverse relationship between Inflation and the
Standard ofLiving
