Impact of Inflation on Middle-Class Households: A Study of Walwa Taluka

The purpose of the present research is to study the impact of inflation on middle-class families in Walwataluka. This study has been conducted to understand the impact of rising inflation on the income, expenditure and savings of middle-class families. Primary and secondary data have been used for this research and primary data has been collected from 400 selected respondents in Walwataluka through questionnaire. Taro Yamane formula has been used to select the sample. The collected data has been categorized through tables and analyzed in percentage terms. The study found that inflation has significantly increased the expenditure related to food grains, fuel, education and health of middle-class families. It has been observed that the increasing expenditure has reduced the savings of many families and has created stress on their financial planning. Based on the Chi-Square test, it has been clear that inflation has had a statistically significant impact on the income, expenditure and savings of middle-class families. The findings of the study show that inflation has had a negative impact on the standard of living of middle-class families in Walwa taluka. Therefore, it is necessary for families to make proper financial planning and for the government to implement effective economic policies to control inflation