Abstract:
Background: Inflation, as a pervasive economic phenomenon, poses significant challenges for
low-income families, particularly in developing countries like Sri Lanka. This study aims to
elucidate the multifaceted impact of inflation on the psychosocial well-being of low-income
households in Sri Lanka, focusing on consumer behavior, education, poverty, and overall well
being.
Objectives: To determine the impact of inflation on psychosocial well-being among low
income families in the context of Sri Lanka
Methods: A comprehensive literature search was conducted, encompassing more than 25
scholarly articles, government reports, and empirical studies examining the nexus between
inflation and psychosocial well-being among low-income families in Sri Lanka. Key databases
including PubMed, Google Scholar, and ERIC were utilized to identify relevant publications.
Results: Results revealed that inflationary pressures significantly impact the psychosocial well
being of low-income families in Sri Lanka. Consumer behavior has been influenced by rising
prices, leading to adjustments in spending patterns and heightened financial stress. Inflationary
pressures also affect the affordability and accessibility of education, contributing to barriers in
educational attainment among economically disadvantaged populations. Furthermore, inflation
caused to exacerbate poverty levels, marginalizing vulnerable communities and increasing
feelings of financial insecurity. As per the psychological consequences, inflation has been
affected to increase stress, anxiety, and overall diminished well-being among low-income
households.
Conclusion: Inflation has directly affected individuals’ psychosocial well-being in many ways.
Hence, by recognizing the complex interplay between inflation and psychosocial well-being,
policymakers and stakeholders should work towards creating a more equitable and inclusive
society for all Sri Lankans.
