Assessing the Effects of Food Price Inflation on Household Consumption Expenditure in Zambia: A Case of Study of Senanga Town

Food price inflation has become a pressing concern globally, especially, in low-income earning countries like Zambia, where households spend a huge allocation of their incomes on food. The purpose of this study was to access the effects of food price inflation on household consumption expenditure in Senanga Town. A quantitative research design was used, with a sample size of 75 was randomly selected, and the data were analyzed using a Megastat. The results shows that food price inflation significantly affected household consumption patterns, with 89% of respondents experienced an increase in food prices and 78.7% adjusted their meal frequency and quantity. Regression (ANOVA test) analysis reveals a statistically significant relationship between food price inflation and household consumption patterns (F - value = 50.38, p-value = 0.00), indicating that household size and monthly household income are significant predictors of consumption patterns. The study also found that food price inflation negatively influenced household investment levels, with 34.7% of respondents reducing investments in assets such as livestock or real estate. The hypothesis test (t-test, pooled variance) confirms a significant difference in household savings/investments before and after the food price rise (mean difference = -0.400, p-value = 0.00). The study further found that household employed various coping mechanisms to slow down the effect of food price inflation such as reducing the portion size (100%), consuming less preferred (77.3%), and borrowing food or money from friends/relatives (58.7%). Regression analysis reveals a significant relationship between household size, monthly household income, and consuming less preferred foods (R² = 0.689, F-value = 38.69, p-value = 0.00), indicating that higher-income households tend to consume fewer less preferred or cheaper foods. The study recommends that the government implement policies to stabilize food prices and improve food security, such as price controls, subsidies, and food assistance programs.