THE STANDARD OF LIVING: EXPLORING INFLATION’S IMPACT ON PAKISTANI CITIZENS

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