Logistic Regression Analysis of the Effect of Inflation on Household Spending in Ebonyi State, Nigeria
This study examined the effect of inflation on household spending in Ebonyi State, Nigeria. Specifically, it assessed the influence of inflation on food and healthcare spending and determined whether its impact differed across income groups. Data were obtained from 386 households using a structured questionnaire, while binary logistic regression and Average Marginal Effects (AMEs) were employed for analysis. Income, education and location were treated as categorical variables. The results showed that inflation significantly affected food spending (AME = 0.176; p < 0.001), healthcare spending (AME = 0.128; p < 0.001) and overall household spending (AME = 0.208; p < 0.001). The effect also differed significantly across income groups (chi^2=11.86; p=0.008)), with lower-income households experiencing greater spending pressures. The study concludes that inflation significantly alters household spending behaviour in Ebonyi State and recommends targeted support for low-income households and measures to stabilize prices of essential goods and services.