Date of Award

5-2025

Document Type

Project

Degree Name

Master of Science in Business and Data Analytics

Department

College of Business and Public Administration

First Reader/Committee Chair

Becerra, Benjamin J.

Abstract

This study aims to investigate the impact of inflation on US household financial stability from 2013 to 2023. As inflation rises, individuals’ purchasing power erodes leading to influence economic behaviors. Behaviors such as spending, saving, and borrowing should be a priority concern in the US economy. Results of this study reveal that inflation does not affect financial well-being and its direct impact on household stability is statistically weak. Regression testing shows that income emerges as the most significant factor. Most noticeably income influences savings and debt management in a positive way. As per these results, economic policies should be focused on increasing income growth. This study explores the results of the interactions between CPI rate, consumer debt, consumer savings, and real median family income. In the analysis chapter, the test shows that economic policies solely targeting inflation control may show little to no improvement to the objective. The complexity of this project could also bring new insights for future research.

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