INFLUENCE OF THE INFLATION RATE ON REAL POPULATION INCOME

Abstract

Abstract.  Inflation is an important macroeconomic phenomenon of the modern economy. It reduces the purchasing power of the population, leading to the depreciation of real incomes. This directly has a negative impact on the living standards and social welfare of households. This article analyzes the mechanisms of inflation's impact on the real income of the population and is aimed at developing policy recommendations to mitigate its consequences. To understand these multifaceted dynamic movements, this research expands significantly upon consumer expenditure patterns, the widening gaps across heterogeneous social groups, and comprehensive microeconomic adjustments. The structural shift within fixed-wage sectors demands rigorous academic analysis to establish a highly specialized protection framework for the general welfare.