Exploring the Impact of Inflation on Psychosocial Well-being among Low Income Families in the Context of Sri Lanka: Narrative Review.

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.