Analyzing the Effect of Inflation on Household Expenditure: A Case of Kabwata Constituency

This study analyzed the effect of inflation on household expenditure on essential goods in Kabwata Constituency, Lusaka, using a mixed-methods approach that combined quantitative analysis of household expenditure data with qualitative insights into coping strategies and lived experiences. Out of 50 questionnaires distributed, 47 were returned, representing a response rate of 94%. Findings revealed that inflation had a profound impact on residents, with 87.8% of households reporting significant price increases in essential goods, particularly maize meal (85.7%), cooking oil, and transport fares. Rising costs were severe, with 72.4% of respondents estimating price hikes above 25% and 41.8% noting increases exceeding 50%, which substantially eroded purchasing power and forced households to increase spending on basic needs while reducing expenditure on non-essential items such as entertainment (72.4%) and clothing (70.4%). Qualitative responses highlighted the emotional and social dimensions of inflation, with households describing maize meal and cooking oil as “indispensable yet unaffordable” and sharing narratives of sacrifice, including cutting back on children’s clothing or foregoing social gatherings to preserve food security. Coping strategies included switching to lower-cost options (30.6%), starting home businesses (25.5%), borrowing (20.4%), and relying on extended family support (18.4%), reflecting resilience, creativity, and reliance on social networks. The study concludes that inflation strained household budgets, compelled residents to reprioritize survival needs, and fostered adaptive behaviors such as price comparison (62.2%) and reliance on informal markets (39.8%), and recommends targeted price stabilization measures, strengthened social safety nets, and programs that support income diversification and financial resilience.