INFLATION AND THE SOCIAL REPRODUCTION OF PAKISTAN’S MIDDLE CLASS: FINANCIAL STRESS, HOUSEHOLD ADAPTATION, AND WELL-BEING IN RAWALPINDI

Abstract

The economic security and livelihoods of middle-class households have been severely impacted by inflation in Pakistan, particularly over the past few years. This study aims to investigate the effect of increasing living expenses on people's financial stress, adaptation strategies, well-being and social reproduction of the middle class in Dhok Syedan, Rawalpindi. A qualitative research design was adopted with purposive sampling and in-depth semi-structured interviews with middle-class household members with various occupations, incomes, and family statuses. Thematic analysis was used to analyze the data. Six themes related to each other emerged: increase in essential household expenditure; financial pressure and economic insecurity; changing spending habits; lower saving and borrowing; pressure on expenditure on education and healthcare; and reduced well-being of households and their future social mobility. The participants reported cutting back on discretionary spending, switching to lower-cost options, making non-essential purchases with savings, borrowing informally, finding other ways to generate income and delaying certain healthcare and/or educational costs. The pressures also led to feelings of anxiety, family conflict and indecision about future plans. The study shows how the process of social reproduction, as theorized by Bourdieu, and the Family Stress Model are influenced by persistent inflation, not only in terms of how much people consume in their current generation, but also how well their families are able to sustain their economic and cultural resources across generations. The results underscore the importance of policies for price stability, essential services that remain affordable, income security, and economic resilience in the middle class.