Analyzing Effects of Inflation on Household Living Conditions: A Case Study of Lusaka Townships

This study explores the effects of inflation on household living conditions in the townships of Lusaka, Zambia, with a focus on how rising prices impact the economic stability and quality of life of low-income households. Given the high inflationary pressures in Zambia, particularly in urban areas, Lusaka’s townships serve as a critical case study to understand the localized consequences of inflation. The research examines changes in household consumption patterns, access to basic necessities (such as food, healthcare, and transportation), and the overall financial well-being of residents in these communities. Through surveys, interviews, and analysis of local economic data, the study identifies the key challenges faced by households, including the rising cost of living, inadequate wage growth, and the limited capacity to absorb shocks. The findings indicate that inflation significantly undermines household purchasing power, leading to reductions in discretionary spending, increases in debt, and shifts towards more affordable (often lower-quality) goods and services. Additionally, the study explores coping strategies employed by households, such as reducing non-essential consumption, engaging in informal economic activities, and relying on remittances. The paper concludes with recommendations for targeted policy interventions, including social protection programs, wage adjustments, and access to affordable housing, to mitigate the negative impact of inflation on the living conditions of Lusaka’s township residents. This case study contributes to the broader understanding of how inflation affects urban poverty and informs local economic policies aimed at improving the resilience of vulnerable communities.