Factors of inflation and mitigating measures on consumption pattern of rural household’s of Chhattisgarh plains

Abstract

This study examines the determinants of inflation, household coping strategies, mitigation measures, and awareness levels in a rural study area characterized by agricultural dependence and structural constraints. Based on primary survey data from 228 respondents, the findings reveal that rising prices of food and non-food items (71.9%) are perceived as the primary driver of inflation, followed by agricultural dependency and seasonal income fluctuations (69.7%), supply chain inefficiencies (67.5%), and government policies enhancing rural liquidity (64%). Structural bottlenecks such as poor transport, long market distances, inadequate storage (61.4%), and market imperfections including middlemen dominance (60.5%) further intensify price pressures. External shocks such as epidemics (58.8%), rising credit costs (57.5%), low market competition (55.3%), and global commodity price fluctuations (53.5%) also contribute to local inflation dynamics. In response to rising prices, rural households adopt economization strategies, with 87.28% reducing overall purchases, 86.40% buying only when necessary, 85.52% minimizing wastage, and 85.08% avoiding non-essential goods. Income-augmenting measures include part-time employment (39.47%) and overtime work (31.58%), while long-term adaptive strategies such as skill development (9.21%), agricultural improvement (11.40%), and investment habits (8.33%) remain limited due to structural and financial constraints. The study also highlights high experiential awareness of inflation, with all respondents acknowledging reduced purchasing power and the protective role of the Public Distribution System. However, gaps persist in understanding broader macroeconomic mechanisms such as commodity trading and inflation-growth relationships. The findings underscore the dual reality of vulnerability and resilience among rural households and emphasize the need for policy interventions focused on strengthening supply chains, improving market access, enhancing financial literacy, and promoting sustainable livelihood diversification to mitigate inflationary impacts.